What additional annual cost is the shop incurring by staying

Assignment Help Operation Management

Reference no: EM131131418

Garden Variety Flower Shop uses 670 clay pots a month. The pots are purchased at $2.40 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000 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 2,000)? (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: EM131131418

Questions Cloud

The design and has assembled a few prototypes : There’s a lady that enjoys making crafts. Another lady has admired her work and has asked her to make 100 identical items for her upcoming wedding. The craft lady has been playing around with the design and has assembled a few prototypes. She has rec..

Think specific individuals are complicit in the perpetuation : Discuss whether you think specific individuals are complicit in the perpetuation of institutional discrimination. If you think certain individuals are complicit, then explain how they are complicit. If specific individuals are not complicit, then how..

Weekly demand for road salt in small community : During the winter season, the weekly demand for road salt in a small community is Normally distributed with a mean of 800 pounds and a standard deviation of 200 pounds. It takes one week lead time to get more salt delivered. To achieve a 99% service ..

Planning-organizing-leading and controlling : In the first part of the semester, we discussed management functions – planning, organizing, leading, and controlling. Apply these functions to the technology function of research and development. How do they relate?

What additional annual cost is the shop incurring by staying : Garden Variety Flower Shop uses 670 clay pots a month. The pots are purchased at $2.40 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000..

Develop high level performance management cycle plan : Develop a high level performance management cycle plan (4-5 pages). The plan should contain an introduction and conclusion that makes relevant connections to course objectives.

What daily order quantity is optimal : Burger Prince buys top-grade ground beef for $1.00 per pound. A large sign over the entrance guarantees that the meat is fresh daily. Any leftover meat is sold to the local high school cafeteria for 80 cents per pound. What daily order quantity is op..

Environmental forces : Based on this...You are the marketing expert for a consulting firm hired to develop a marketing plan for a new tourist restaurant in Florida based on a magical fantasy-type theme (think Hogwarts from Harry Potter). Environmental Forces List the five ..

In particular section of progressive field : In a particular section of Progressive Field, there is one “family restroom” (where a mom can take her young son to the bathroom). The time between customers is 7 minutes. The average family uses the restroom for 5 minutes. The tribe has received com..

User Account

All Pages