The Metropolitan Bus Company $($MBC$)$ purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $$225$ per

order to cover the expenses of delivering and transferring the fuel to MBC$\text{'}$s storage tanks. The lead time for a new shipment from American Petroleum is $10$ days; the cost

of holding a gallon of fuel in the storage tanks is $$0\mathrm{.}03$ per month, or $$0\mathrm{.}36$ per year; and annual fuel usage is $180,000$ gallons. MBC buses operate $288$ days a year.

$($a$)$ What is the optimal order quantity for MBC$?$

$($b$)$ How frequently should MBC order to replenish the gasoline supply?

per

$($c$)$ The MBC storage tanks have a capacity of $17,500$ 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 The Metropolitan Bus Company $($MBC$)$ purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $$225$ per order to cover the expenses of delivering and transferring the fuel to MBC$\text{'}$s storage tanks. The lead time for a new shipment from American Petroleum is $10$ days; the cost of holding a gallon of fuel in the storage tanks is $$0\mathrm{.}03$ per month, or $$0\mathrm{.}36$ per year; and annual fuel usage is $180,000$ gallons. MBC buses operate $288$ days a year.

$($a$)$

What is the optimal order quantity for MBC$?$

$($b$)$

How frequently should MBC order to replenish the gasoline supply?

$---$Select$---$

per

$---$Select$---$

$($c$)$

The MBC storage tanks have a capacity of $17,500$ gallons. Should MBC consider expanding the capacity of its storage tanks?

The maximum inventory is

$.$ MBC

$---$Select$---$

to expand its storage tanks.

$($d$)$

What is the reorder point $($in gallons$)?$

gallons