What additional annual cost is the shop incurring

Assignment Help Operation Management
Reference no: EM132247195

Garden Variety Flower Shop uses 890 clay pots a month. The pots are purchased at $3.70 each. Annual carrying costs per pot are estimated to be 50 percent of cost, and ordering costs are $30 per order. The manager has been using an order size of 1,000 flower pots.

a. What additional annual cost is the shop incurring by staying with this order size? (Round your optimal order quantity to the nearest whole number. Round all other intermediate calculations and your final answer to 2 decimal places. Omit the "$" sign in your response.)

Additional annual cost           $  

b. Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,000)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent. Omit the "%" sign in your response.)

About  % of the storage space would be needed.

Reference no: EM132247195

Questions Cloud

Purpose of the affordable care act : The purpose of the Affordable Care Act is to make affordable health insurance available to more people; expand Medicaid program to cover all low-income adults
Affordable care act impact human resources planning : How does the affordable care act impact Human Resources planning at major hospitals, community clinics and county health departments.
What amount of safety stock is appropriate : What amount of safety stock is appropriate? How much of this item should be reordered?
Healthcare systems engineering in patient safety : Describe example of hospital using healthcare systems engineering in patient safety. How has aging of our U.S. population effected labor-management relations.
What additional annual cost is the shop incurring : What additional annual cost is the shop incurring by staying with this order size?
The seven-step comprehensive model of change : When using the seven-step comprehensive model of change. Which of the following is the first step in building a social media plan?
What was inventory turns for this home insulation supplier : What was the inventory turns for this home insulation supplier for this fiscal year?
What factors contribute to the failure to confront issue : What factors contribute to the failure to confront an issue? What steps could a business take to encourage confrontation?
Which you feel proud and high level of satisfaction : Reflect upon an achievement or accomplishment in your life about which you feel proud and a high level of satisfaction.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd