the metropolitan bus company (mbc) purchases diesel fuel from american petroleum supply. in addition to the fuel cost, american petroleum supply charges mbc $150 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 $0.02 per month, or $0.24 per year; and annual fuel usage is 180,000 gallons. mbc buses operate 288 days a year.
