What additional annual cost is the shop incurring by staying

Assignment Help Operation Management

Reference no: EM13229372

Garden Variety Flower Shop uses 740 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs are $20 per order. The manager has been using an order size of 1,500 flower pots.

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

Reference no: EM13229372

Questions Cloud

Explain volume change after nano3 is dissolved : A buffer is prepared by dissolving .0250 mol of sodium nitrite in 500 ml of 0.0329 M nitrous acid. Assume no volume change after NaNO3 is dissolved. calculate the pH of this buffer.

With whom does your organization compete in terms : With whom does your organization compete in terms of compensation and benefits? What does your company policy say?

Calculate amount of work done if all losses are neglected : A container with a plunger compresses one pound mole of an ideal gas from 1 atmospheres pressure to 10 atmospheres. Calculate the amount of work done if the process is considered to be polytropic.

What will the new service probability be : Suppose the production manager is asked to reduce the safety stock of this item by 50%. If she does so, what will the new service probability be?Type your question here.

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

Work breakdown structures : The teams then compared the resulting work breakdown structures and found that they were significantly different. Is only one of the work breakdown structures correct?

What are the pros and cons of great lakes coating : what are the pros and cons of great lakes coating's not having formalized policies regarding employees behavior?

What behaviors destroy trust : What behaviors develop or elicit trust? What behaviors destroy trust? Can there be too much trust?

What ordering cost would enable the manager : The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering ..

User Account

All Pages