Southwest airlines has an agreement to buy jet fuel from, Ask an Expert

Management Studies

Southwest airlines has an agreement to buy jet fuel from Exxon. The goal is to minimize total cost (i.e., ordering cost and holding cost). The annual demand for fuel is 2.273 million gallons. Exxon charges Southwest $3085 to process each order. Southwest airlines incurs a holding cost of $0.8 per gallon.

What is the optimal order quantity?

How often does Southwest need to place orders with Exxon?

What is the inventory level (re-order point) at which Southwest needs to place an order if the lead time for orders is 11 days?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92595253

Have any Question?Write your Review or question?

Related Questions in Operation Management

Chef gordon ramsey is boiling mad at his hr manager the

Chef Gordon Ramsey is boiling mad at his HR manager. The manager will not hire anyone whose shoes are not well polished when they come to the interview. Ramsey doesn’t know how the manager cooked up such a requirement an ...

Utilization review and quality managementas employers look

Utilization Review and Quality Management As employers look to control health care costs, MCOs have implemented utilization review protocols to ensure the right care is provided to patients at the right time. At the same ...

1 suppose that 4900 worth of a particular item is used each

1. Suppose that $4,900 worth of a particular item is used each year, it costs $50 to place an order, and inventory carrying costs are estimated at 25%. What is the dollar amount of the economic order quantity? 2. Suppose ...

1 through a certain transaction coffee bean cafeacutes inc

1. Through a certain transaction, Coffee Bean Cafés, Inc., acquires all of the shares of Deli Dining Corporation for some of Coffee Bean’s shares. Both Coffee Bean and Deli Dining continue to exist. This is a. a share ex ...

1briefly explain goal-setting theory reinforcement theory

1. Briefly explain goal-setting theory, reinforcement theory , expectancy theory, & equity theory. 2. What is the difference between transformational leadership and transactional leadership?

Authors friedman and langbert 2000 discuss the example of

Authors Friedman and Langbert (2000) discuss the example of Abraham as one of the greatest transformational leaders of all times; he is responsible for three major world religions. What traits were displayed by Abraham t ...

1 international monetary fund is a international

1. International Monetary Fund is a international organization headquarter in Washington, DC. This is for 189 countries to foster global financial stability, international trade, high employment and economic growth. This ...

Rays satellite emporium wishes to determine the best order

Ray's Satellite Emporium wishes to determine the best order size for its best-selling satellite dish.Ray has estimated that weekly demand for this model to be 25 units with a standard deviation of 5 units.His cost to car ...

In your post consider how globalization has linked the

In your post, consider how globalization has linked the people, policies, and livelihoods of nations throughout the world. This linkage can be severely affected by several factors which include political turmoil, natural ...

You are having coffee with your long-time friend and fellow

You are having coffee with your long-time friend and fellow employee (but not someone directly in your chain of command), when she discloses to you in-confidence that she has stolen money from the "petty cash" drawer to ...

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