Mathematics, 05.05.2020 18:36 tiffg2588

The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $250 per order to cover the expenses of delivering and transferring the fuel to MBC's storage tanks The lead time for a new shipment fromAmerican Petroleu a gallon of fuel in the storage tanks is $0.04 per month, or S0.48 per year, and annual fuel usage is 150,000 gallons. MBC buses operate 300 days a year. a. What is the optimal order quantity for MBC? b. How frequently should MBC order to replenish the gasoline supply? . c. The MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expanding the capacity of its storage tanks? d. What is the reorder point?

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The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition...

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