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Case Study. The management of a taxi company is currently facing two problems: one about gasoline inventory and the other about the service rate
Case Study. The management of a taxi company is currently facing two problems: one about gasoline inventory and the other about the service rate of the employees answering customer calls at taxi stands. Problem 1. The company uses gasoline at the rate of 48,000 liters per month. Gasoline cost is a major cost for the company, so the company made a special arrangement with a petroleum company to purchase large quantities of gasoline at a reduced price of 30 TL per liter every few months. Each gasoline order costs the company a fixed cost of 12,000 TL and the cost of holding the gasoline in storage is estimated to be 0.02 TL per liter per month. Fill in the following two tables based on this information. taxi number of months between number of orders annual consecutive order quantity annual fixed ordering cost annual variable total ordering cost orders per year inventory holding cost annual cost 1 EOQ 8 10 3 6 number of months between consecutive orders number of orders per annual fixed ordering cost annual variable ordering cost year annual inventory holding cost total annual cost
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