What is the optimal order quantity for MBC? (b) How frequently should MBC order to replenish the gasoline supply? dont need help wiht part B. 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
Q: Why use a project management software such as MS Project better than MS Excel to manage and store…
A: Project's built-in capabilities are superior to Excel when it comes to managing project information.…
Q: A chemical firm is considering how best to supply the world market for sulfuric acid. A…
A: The company ought to support distributed manufacturing. The start-up cost is a pitiful $20 million…
Q: A product has a reorder point of 110 units and is ordered four times a year on average. The…
A: The detailed solution is given in Step 2
Q: Asia Furnishing is a retailer of modular toilet products. Currently, the lead time for one of the…
A: Lead time for 1st supplier = L1 = 5 weeks Average demand = d = 200 per week Std. Deviation of demand…
Q: used to measure quality and cite the advantages and disadvantages of their utilization.
A: Employers may readily grasp and interpret information with the use of quality management systems,…
Q: (d) Assume that the company wants to complete the project in six months or 26 weeks. What is the…
A: A network diagram related to the project shows the sequence of the task that is performed to…
Q: Which of the following statements about the basic EOQ model is Ture? If the holding cost were to…
A: Economic order quantity (EOQ) is an inventory management tool which helps to identify the optimal…
Q: Suppose that the feasible region of a maximization LP problem has corners of (0,0), (10,0), (5,5),…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: Sales of Cool-Man air conditioners have grown steadily during the past 5 years: Year 1 2 3 4 5 6 7 8…
A: Given data is
Q: Carlos Cavalas, the manager of Echo Products’ Brazilian Division, is trying to set the production…
A: Required production = Expected sales + Desired ending inventory - Beginning inventory
Q: Mark Gershon, owner of a musical instrument distributorship, thinks that demand for guitars may be…
A: From the above information, Let, Y =Estimated value demand for guitars (dependent variable) x…
Q: Dave Fletcher was able to determine the activity times for constructing his laser scanning machine.…
A: Activity Immediate Predecessors Duration A - 5 B - 8 C A 2 D A 1 E B 3 F B 5 G…
Q: Given a model of a simple queue, describe, in a simplified way, what is a source of customers.
A: Queueing model is used to explain the waiting line and help the decision maker to plan the capacity.…
Q: Q1.1. Formulate the LP problem in a mathematical model. Q1.2. Minimum is obtained at what…
A: Linear programming is a mathematical method for solving a system of linear equations. It is an…
Q: Consider the following LP problem developed at Zafar Malik's Carbondale, Illinois, optical…
A: Given data is Objective function: Max Z=1X1+1X2 Subject to constraints: C1.) 2X1+1X2≤100C2.)…
Q: Office Automation Inc., developed a proposal for implementing a software system that will…
A: NOTE: We are allowed to do first 3 sub-parts only. In project management, a critical path is the…
Q: Define the concept of a percentage
A: Percentage us the number of ratio that represented in the form of fraction of 100. It is indicate…
Q: For each of the following occupations, discuss possible hazards. What actions can employers take to…
A: a. Worker in a fast-food restaurant: Risk: For employees, restaurants may demonstrate several risks.…
Q: Formulate but do not solve the problem. A manufacturer of women's blouses makes three types of…
A: Decision Variables:x, y, and z denote the amount of sleeveless, short-sleeve, and long-sleeve…
Q: Based on your calculations, (a. an increase, b. a decrease) in physical capital per worker from 2016…
A: Productivity is the amount of work that is produced in a given amount of time. It can be measured by…
Q: How many pounds should be ordered at the order point? How many 10-pound b. The order is placed when…
A: In any organization, the stock of the material, products, and semi-finished products are required to…
Q: The following data relate the sales figures of the bar in Mark Kaltenbach's small bed-and-breakfast…
A: Linear Regression Assume X = Guests Y = Bar sales X Y XY X2 16 320…
Q: Which project delivery method is the LEAST favorable when the owner has no construction experience?…
A: The project delivery method refers to the techniques used to deliver the project in the construction…
Q: d. Dr. I QUESTION 7 A conversion process consists of four steps: cutting, welding, tumbling, and…
A: Rolled throughput yield is a key metric used in manufacturing. It is defined as the ratio of the…
Q: o value chains in businesses
A: Finding the activities that offer the greatest value in terms of lower costs or competitive…
Q: 3. Define the concept of outsourcing and write short notes on advantages and disadvantages of global…
A: The concept of outsourcing can be defined as a business practice in which a company hires a third…
Q: .What is the objective function? 2. Express the first constraint (wood) in mathematical sentence 3.…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: Sunset Airlines is concerned about the level of service for its check-in procedure. Currently, a…
A: *As per guidelines first three parts are answerable. Given data: Customer arrival rate (λ) =15…
Q: What are the total quality management principles of Nissan
A: Nissan is famously associated with 'Kaizen' or continuous quality improvement. Nissan states: 'We…
Q: The inner diameter of piston rings follows a normal distribution with mean 75mm and variance =9. The…
A: Given data: Mean = 75mmVariance =9The sample size is = 5. If an X-bar chart is established L =2,UCL…
Q: A machine makes two components; call them types A and B. It takes 630 seconds to switch production…
A: The batch size is indeed the number of samples processed prior to a model modification. The number…
Q: Explain how to determine the number of variables and constraints that would be in a transportation…
A: The transportation problem arises frequently in planning for the distribution of goods and services…
Q: Cost/ton $50 $10 14 If the state requires a reduction of at least 60 tons per day of pollutant 1, at…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: Solve the linear programming problem by the method of corners. Minimize subject to C = 8x + 6y x + y…
A: Objective Functions and Constraints: Based on the given details, the objective…
Q: A company incurs an ordering cost of $40 each time it places an order, regardless of the order size.…
A: Given: Q = 439 Annual demand (D) = 10850 Ordering or Setup cost (S) = 40 Holding cost (H) = 45*10% =…
Q: hich one of the following is an advantage of lean systems? Question content area bottom Part…
A: Lean system implementing the lean principles in each areas of business including operations,…
Q: (Chapter 19) Consider the project, code name Business Al, with 5 activities, The precedence table…
A: Given data is
Q: A Lady (L) bought an item of Rs 100 from the Shopkeeper (C). She paid him through a 500 Rs Note.…
A: Given scenario-A lady has given the shopkeeper (c) = Rs 500 (to return back Rs 100)Shopkeeper (c)…
Q: would you recommend Techtonic use, and why?
A: Indeed, we would surely recommend Techtonic use for the following reasons. Organizations like…
Q: What distinguishes risk management from risk assessment?
A: Risk is the likelihood that the result will be different from what is anticipated. Business risk is…
Q: What are the strategies to maintain adequate production levels in terms of land, buildings,…
A: As a business, you will need to make sure that you maintain adequate production levels in terms of…
Q: any, its suppliers, and oth
A: Supply chain management, which controls the flow of goods and services, includes all procedures used…
Q: List any five (5) costs prevalent in aggregate planning in the motor car industry
A: The manufacturing of all items for an enterprise can be planned using aggregate planning over a…
Q: Brown Limited buys small ornaments and resells them. The production manager got the following data…
A: a) Let, y= Trend value of the sales in period "t" x =time in months b0 =Intercept of the trend…
Q: Why do we say Inventory can become a liability? Provide 2 situations creating this risk
A: "Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Problem 4: A canoe manufacturer employs 120 men, each of whom works for up to thirty hours per week.…
A: Decision Variable: Suppose-S be the no. of standard canoeD be the no. of deluxe canoe
Q: What is the total vehicle life cycle cost of this hybrid car given the information provided in the…
A: Life cycle costing is a technique for totaling all expenses related to an asset, from the beginning…
Q: a. A loan processing operation that processes an average of 7 loans per day. The operation has a…
A: Production is the process in which inputs are combined to have the required output. It includes a…
Q: Describe the operations of the organisation and it's product (digicel)
A: Digicel was founded in 2001 by Denis O'Brien, an Irish billionaire. He envisioned a world where the…
Q: An architect firm uses an average of 60 boxes of copier paper a day. The firm operates 280 days a…
A: EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Step by step
Solved in 3 steps with 2 images
- Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 Of the four categories of variables, which one seems to be the most central to Ski Butternuts segmentation strategy, and why?Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 What role do geographic variables play in Ski Butternuts segmentation and targeting?Located in the picturesque Berkshire Mountains of Western Massachusetts, Ski Butternut has been a family-owned, family-oriented ski destination for more than 50 years. The resort includes 22 trails for downhill skiing and snowboarding, two terrain parks for riding, and a dedicated area for snow tubing. Although Ski Butternut hosts some non-ski events during summer and fall, its business goes into high gear when snowy weather arrives, bringing skiers and riders from across Massachusetts, Connecticut, New York, and New Jersey. Matt Sawyer, Ski Butternuts director of marketing, says the primary target market has always been families with young children who are seeking affordable skiing. Everything from the snack-bar menus to the ski-shop merchandise is presented with families in mind. So that parents can have fun in the snow without worry, the resort has a Childrens Center for children who are too young to ski or have no interest. Fifth-graders are invited to ski for free when accompanied by an adult who buys an adult lift ticket. The resort also created two terrain parks for young snowboarders who were clamoring for a more exciting riding experience. Without the terrain parks, Sawyer says, these boarders would have asked their parents to take them to competing mountains in Vermont. Ski Butternuts research shows that first-timers are a particularly important segment, because they tend to have a strong allegiance to the resort where they learn to ski. First-timers typically visit the resort seven times before seeking out more challenging mountains. As a result, Ski Butternut has made teaching first-timers to ski or snowboard one of its specialties. For this market, the resort bundles ski or board rentals, lift tickets, and also offers a wide range of individual and group lessons for all ages and abilities at a value price. Because Ski Butternut has trails for different skill levels, beginners can challenge themselves by changing trails within the resort once they feel confident. Ski Butternut also targets seniors and college students. Knowing that weekends are the busiest period, the resort offers special midweek prices to attract seniors who have free time to ski on weekdays. College students are particularly value-conscious, and they often travel to ski resorts as a group. As a result, Ski Butternut offers weekend and holiday discounts to bring in large numbers of students who would otherwise ski elsewhere. Thanks to Facebook, Twitter, and other social media, students quickly spread the word about special pricing, which enhances Ski Butternuts ability to reach this key segment. In addition, the resort highlights discount pricing for families when targeting specific segments, such as scout troops, military personnel, emergency services personnel, and members of local ski clubs. Another segment Ski Butternut has selected for marketing attention is ski racers. The resort features professional coaching, lessons, and programs for ski racers in the age group of 8 to 20. Sawyer notes that these ski racers are extremely dedicated to training, which means theyre on the slopes as often as possible, a positive for the resorts attendance and revenue. To stay in touch with racers, Ski Butternut has a special website and a dedicated Facebook page. Sawyer conducts up to 1,200 customer surveys every year to better understand who his customers are and what they need. He also compares the results with skiers who visit mountains of a similar size in other areas. Digging deeper, he analyzes data drawn from the ski shops rental business to build a detailed picture of customers demographics, abilities, and preferences. Based on this research, he knows that the typical family at Ski Butternut consists of two children under age 18 who ski or ride, and at least one parent who skis. Because they can obtain so much information from and about their customers, Sawyer and his team are able to make better decisions about the marketing mix for each segment. By better matching the media with the audience, they get a better response from advertising, e-mail messages, and other marketing communications. As one example, they found that 15 percent of the visitors to Ski Butternuts website were using a smartphone to access the site. Sawyer has now created a special version of the site specifically for mobile use and created a text-message contest to engage skiers who have smartphones.16 How is Ski Butternut applying behavioristic variables in its segmentation strategy? Explain your answer.
- Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?VITRAN Bus Services purchases diesel fuel from Domino Gas Supply. In addition to fuel cost, Domino Gas Supply charges VITRAN Bus Services $250 per order to cover the expenses of delivering and transferring the fuel to VITRAN Bus Services storage tanks. The lead time for new shipment from Domino Gas Supply is 10 days, the cost of holding a gallon of fuel in the storage tanks is $0.04 per month, or $0.48 per year and the annual usage of fuel is 150,000 gallons. VITRAN Bus Services buses operate 300 days a year. What is the optimal order quantity for VITRAN Bus Services? How frequently should VITRAN Bus Services order to replenish the gasoline supply?The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $200 per order to cover the expenses of delivering and transferring the fuel to MBC'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 $0.04 per month, or $0.48 per year; and annual fuel usage is 120,000 gallons. MBC buses operate 300 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 12,500 gallons. Should MBC consider expanding the capacity of its storage tanks? The maximum inventory is . MBC needs/doesnt need 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 $250 per order to cover the expenses of delivering and transferring the fuel to MBC’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 $0.04 per month, or $0.48 per year; and annual fuel usage is 150,000 gallons. MBC buses operate 300 days a year.a. What is the optimal quantity for MBC? b. how frequently should MBC order to replenish the gasoline supply? c. the MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expanding the capacity of its storage tanks? d. what is the recorder point?Travel Co. specializes in trans-American moves for businesses and individuals through the shipment of containers. For every container the company transports via rail, Travel Co. must pay the rail owners $5,000. In addition, containers are weighed and for each pound of weight, the company must pay $0.40. Harry plans to charge $0.68 per pound to his customers. How many pounds would a container have to hold in order for the company to Break Even? What would the total revenue be at Break Even? The company finds out that to maintain the integrity of its containers, each container could only hold an average of 16,000 pounds. What would the company have to charge customers to make $7,000 in profit on each container?Ascent, Inc. manufactures hiking boots. Demand for boots is highly seasonal. In particular, the demand in the next year is expected to be 3,000, 4,000, 8,000, and 7,000 pairs of boots in quarters 1, 2, 3, and 4, respectively. With its current production facility, the company can produce at most 6,000 pairs of boots in any quarter. Ascent would like to meet all the expected demand, so it will need to carry inventory to meet demand in the later quarters. Each pair of boots sold generates a profit of ₱1,000 per pair. Each pair of boots in inventory at the end of a quarter incurs ₱400 in storage and capital recovery costs. Ascent has 1,000 pairs of boots in inventory at the start of quarter 1. Ascent's top management has given you the assignment of modeling and analyzing what the production schedule should be for the next four quarters. In particular, you are asked to determine how many pairs of boots to produce in each quarter so that you satisfy the demand in each quarter. While doing…
- The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $250 per order to cover the expenses of delivering and transferring the fuel to MBC’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 $0.04 per month, or $0.48 per year; and the annual fuel usage is 150,000 gallons. MBC buses operate 300 days a year. a. What is the optimal order quantity for MBC? b. How frequently should MBC order to replenish the gasoline quantity? c. What is the reorder point?An oil company ships to three different customers. Customer A requires 60 tons per year, Customer B requires 24 tons, and Customer C requires 8 tons. The product costs $10,000 per ton, and holding costs are estimated at 25%. Each truck costs $800 to send as a fixed cost and incurs an additional $250 charge for each stop it makes. Each truck can haul 12 tons of the product. What is the optimal delivery policy if the oil company ships to each customer individually? What is the optimal delivery policy if the oil company aggregates all shipments to the customers?opOil, a refiner in Indiana, serves three customers near Nashville, Tennessee and maintains consignment inventory (owned by TopOil) at each location. Currently, TopOil uses TL transportation to deliver separately to each customer. Each truck costs $800 plus $250 per stop. Thus delivering to each customer separately costs $1050 per truck. TopOil is considering aggregating deliveries to Nashville on a single truck. Demand at the large customer is 60 tons per year, demand at the medium customer is 24 tons per year, and demand at the small customer is 8 tons per year. Product cost for TopOil is $10,000 per ton and they are using a holding cost of 25 percent. Truck capacity is 12 tons. What is the optimal order quantity to each customer assuming TopOil develops a tailored aggregation policy?