Calculate the total cost of ordering and carrying clay pots, Operation Management

Assignment Help:

1. Garden Variety Flower Shop uses 1000 clay pots a month. The pots are purchased at $3 each. Annual carrying costs per pot are estimated to be 25% of cost, and ordering costs are $25 per order.
a. Determine the economic order quantity.
b. Compute the total cost of ordering and carrying clay pots.
c. If the manager has been using an order size of 2,000 pots, how much can be saved per year by improving the inventory policy?


Related Discussions:- Calculate the total cost of ordering and carrying clay pots

Explain federal mediation and conciliation service, Based on the most curre...

Based on the most currently reported data by the American Arbitration Association and the Federal Mediation and Conciliation Service, you should factor all but one of the following

Factors for plant location choice - availability of services, Factors for p...

Factors for plant Location choice - Availability of Services There are six main  services which  need to be  considered: Gas Electricity Water Drainag

Explain generally accepted accounting principles, • Describe the importance...

• Describe the importance of generally accepted accounting principles (GAAP) in deriving financial information for evaluating the financial performance of integrated health organiz

Explain local company to custom-produce your product line, You are the new ...

You are the new owner of a local ice cream store located in a strip mall adjacent to a university campus. You've decided to sell 20 flavours of ice cream and are contemplating whet

Explain the ten commandments of america culture, Go toto gmi.org and search...

Go toto gmi.org and search for "The Ten Commandments of America Culture." The list presents ten sayings that represent commonly accepted American cultural values. Think about how t

Explain mechanical license hand-out, Find a cover song from one of your CD'...

Find a cover song from one of your CD's. If you have no CD, use one from the library. Looking at the credits & using the Mechanical License hand-out as a reference, submit the foll

Influence of the product life cycle - operation strategy, Influence of the ...

Influence of the Product Life Cycle - Operation Strategy The influence of the product life cycle on operational performance objectives are: The life cycle curve shown in th

Explain cost management a strategic emphasis, Do you have the test associat...

Do you have the test associated with the book Cost Management A strategic Emphasis, 5th edition

Explain what suggestions do you have for improving program, Go to skillsoft...

Go to skillsoft.com, the website for Skill soft, a company that specializes in providing e-learning solutions. Move the cursor over Info Center, then over Demos. Click on Business

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd