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month, or $ 0 . 3 6 per year; and annual fuel usage is 1 2 0 , 0 0 0 gallons. MBC buses operate
month, or $ per year; and annual fuel usage is gallons. MBC buses operate days a year.
a What is the optimal order quantity for MBC
b How frequently should MBC order to replenish the gasoline supply?
pel
c The MBC storage tanks have a capacity of gallons. Should MBC consider expanding the capacity of its storage tanks?
The maximum inventory is
MBC
to expand its storage tanks.
d What is the reorder point in gallons
gallons
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