Jack owns a local trucking company with fuel costs being, Ask an Expert

Management Studies

Jack owns a local trucking company. With fuel costs being expensive, Jack wants to evaluate how much fuel, on average, he should store in his 6,800 gallon fuel tank. Each year Jack uses 68,000 gallons of diesel (usage is spread evenly throughout the year). Jack knows with certainly that he can have a load of fuel delivered in 5 days. The price of fuel is $2.04 per gallon and there is a separate $50 ordering fee per order. Jack thinks his holding cost per unit is 40%. If Jack orders at EOQ, what will be the average inventory of fuel in his 6,800 gallon tank?

A. ~1,202 gallons

B. ~1,278 gallons

C. ~2,164 gallons

D. ~1,443 gallons

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92285951

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 what are the national factors driving the

1. What are the national factors driving the internationalization of the media industry? What are the core business factors pushing this trend? For example, the growing middle class in emerging markets? And is the trend ...

Sache inc expects to sell 1400 of its designer suits every

Sache, Inc., expects to sell 1,400 of its designer suits every week. The store is open seven days a week and expects to sell the same number of suits every day. The company has an EOQ of 1,250 suits and a safety stock of ...

1 which form of paternalism prevents action when it is

1. Which form of paternalism prevents action when it is non-voluntary, or when intervention is necessary to determine whether it is voluntary or not? a. Strong Paternalism b. Weak Paternalism c. Hard Paternalism d. Deont ...

Ethical issue los angelesndashbased clothing company

Ethical Issue: Los Angeles–based clothing company Barabas seized the moment after Sean Penn's notorious Rolling Stone interview with brutal Mexican drug kingpin Joaquin “El Chapo” Guzman. The clothier used the name and l ...

1 what are the three comparative advantages mentioned in

1. What are the three comparative advantages mentioned in the textbook? Describe and quote examples. 2. What are some of the common justifications for implementation of information systems in a public sector organization ...

1 discuss the case involving the united states of america

1. Discuss the case involving the United States of America versus Ross Ulbricht. 2. Ransomware and the evolution of data breaches? Do we have good solutions to manage data breaches effectively? 3. Do you have a mentor? I ...

The black jack distillery produces custom blended whiskey a

The black jack distillery produces custom blended whiskey. a particular blend consists of rye and bourbon whiskey. the company has received an order for a minimum of 400 litres of the custom blend. the customer also spec ...

Compare and analyse the effect of multi-national companies

Compare and analyse the effect of Multi-National Companies (MNCs) in Fast Food Chain Outlets with Saudi Based domestic Fast Food Outlets. Consider one MNC Fast Food outlet (McDonalds / KFC / Pizza Hut / Baskin-Robbins) w ...

1 most brokers will set a minimum level of commissions that

1. Most brokers will set a minimum level of commissions that must be earned by a sales associate becoase of a) association fees b) insurance fees c) secretarial costs d) desk costs 2. How is "Comparable worth" translated ...

If an organization has three information assets it

If an organization has three information assets it evaluates for risk management purposes, as shown in the accompanying data below, which vulnerability should be evaluated for additional controls first? Which vulnerabili ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert