What additional annual inventory control cost

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Reference no: EM132255781

A flower shop uses 250 clay pots a month. The pots are purchased for $2 each. Annual holding cost is estimated to be 30 percent of purchase cost, and ordering cost is $20 per order. The manager has been using an order quantity of 250 flower pots.

a. Calculate the EOQ.

b. Calculate the EOQ’s total annual inventory control cost.

c. What additional annual inventory control cost is the shop incurring by using the current order quantity?

Reference no: EM132255781

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