Question: Please solve his using Excel, if possible. The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost,
Please solve his using Excel, if possible.
The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $300 per order to cover the expenses of delivering and transferring the fuel to MBC's storage tanks. The lead time for a new shipment from American Petroleum is 10 days: the cost of holding a gallon of fuel in the storage tanks is $0.05 per month, or $0.6 per year; and annual fuel usage is 100,000 gallons. MBC buses operate 250 days a year. a. What is the optimal order quantity for MBC? Q* = b. How frequently should MBC order to replenish the gasoline supply? orders per year C. The MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expending the capacity of its storage tanks? Metropolitan Bus Company - Select your answer - the capacity of its storage tanks. d. What is the reorder point? gallons
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