Problem $14-5($Algorithmic$)$

The Metropolitan Bus Company $($MBC$)$ purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $$215$ per order to cover the expenses of delivering and transferring the fuel to MBC$\text{'}$s storage tanks. The lead time for a new shipment from American Petroleum is $11$ days; the cost of holding a gallon of fuel in the storage tanks is $$0\mathrm{.}04$ per month, or $$0\mathrm{.}48$ per year; and annual fuel usage is $129000$ gallons. MBC buses operate $300$ days a year.

a$.$ What is the optimal order quantity for MBC$?$

$Q^{**}=$

b$.$ How frequently should MBC order to replenish the gasoline supply? If required, round your answer to two decimal place.

$$ order$($s$)$ per month

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?

$r=$ X gallons

Feedback $q,$

$$ Check My Work

Partially correct