What additional annual cost is the shop incurring by staying

Assignment Help Business Management

Reference no: EM131484662

Garden Variety Flower Shop uses 790 clay pots a month. The pots are purchased at $3.20 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: EM131484662

Questions Cloud

What role would each play in the decision process : Assume you have written this textbook and are going to attempt to sell it to your school. What role would each play in the decision process?

Plot the data for ten of the countries in the tables : You are going to draw a scatter diagram, with 2006 GNI per capita (from Table 2.1) on the horizontal axis and the ratio of income received by the richest.

Build on earlier stages of the project : Build on earlier stages of the project (proposal and presentation) to develop a computer-based DSS/BIS prototype for analysing data from a Department of Social Services

What patient factors should you consider : What patient factors should you consider? Are supplemental hormones the best option for the patient, or would they benefit from alternative treatments?

What additional annual cost is the shop incurring by staying : What additional annual cost is the shop incurring by staying with this order size?

Different parts of the nephron : What are the different parts of the nephron? This is a biology and kidney system function question.

How can we distinguish between good and bad strategy : From a societal perspective, how can we distinguish between "good" strategy and "bad" strategy? Can you give some specific examples of each?

Identify high-fructose corn syrup in products : What advice would you give consumers when reading labels to identify High-fructose corn syrup in products?

Describe the biology behind dna-based vaccines : Next suggest what you believe are the major similarities and differences between these two (2) therapies. Which do you believe is the best option?

User Account

All Pages