Question: month, or $ 0 . 3 6 per year; and annual fuel usage is 1 2 0 , 0 0 0 gallons. MBC buses operate

month, or $0.36 per year; and annual fuel usage is 120,000 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?
pel
(c) The MBC storage tanks have a capacity of 12,500 gallons. Should MBC consider expanding the capacity of its storage tanks?
The maximum inventory is
. MBC
to expand its storage tanks.
(d) What is the reorder point (in gallons)?
gallons
 month, or $0.36 per year; and annual fuel usage is 120,000

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