Question: Problem 2. A Shell de Puerto Rico concessionaire buys 50,000 liters of gasoline per month to sell to its customers. The cost of placing each
Problem 2. A Shell de Puerto Rico concessionaire buys 50,000 liters of gasoline per month to sell to its customers. The cost of placing each order is $ 200 and the delivery time is one week (0.25 months). Each liter costs $ 0.50 and the inventory rate is 30%. A discount will be applied if the dealer orders 100,000 liters in each order. The cost per liter would change to $ 0.45 and the delivery time would change to one month. 1. What should be your order quantity? (20 points) The amount of gasoline to buy for each order based on the EOQ model is Response. 2. What are the total costs if they don't take the discount? The total annual cost if you do not take the discount is Answer. 3. What are the total costs if they take the discount? The total annual cost if you take the discount is Answer 4. Provide the optimal inventory policy: Q = Answer R = Answer
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