What benefit would using optimal order quantity yield

Assignment Help Operation Management

Reference no: EM132178914

Garden Variety Flower Shop uses 710 clay pots a month. The pots are purchased at $2.20 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: EM132178914

Questions Cloud

How often do you engage with or witness death in your work : How often do you engage with or witness death in your work? How has this experience or the lack of it shaped your view of death? Has it gotten easier or harder.

Discuss about the analysis of the sin of suicide and thus : Reflect on the analysis of the sin of suicide and thus, euthanasia from the topic readings. Do you agree? Why or why not? Refer to the lecture and topic reading

Define social use of music in contemporary american society : My topic is as follow: The social use of music in contemporary American society. Works Cited page with at least 3 sources. Use any standard form.

Conjoint study for new frozen dinner for lean cuisine : Design conjoint study for a new frozen dinner for Lean Cuisine. Specifically, I'd like you to give us:

What benefit would using optimal order quantity yield : What benefit would using the optimal order quantity yield (relative to the order size of 1,000)?

Compare the similarities of the two nursing theories : Create an overview of two chosen nursing theories, giving key points and factors of each. Compare the similarities of the two nursing theories.

Describe how financial and budgetary controls : Describe how financial and budgetary controls are used in the tool described above

The business world today continues to become more globalized : The business world today continues to become more globalized, and most managers will find themselves working with at least one team member

Systems analyst on the consulting team assigned : Assume that you are a systems analyst on the consulting team assigned to the Williams Specialty Co. engagement.

User Account

All Pages