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

Calculate the economic order quantity, A local nursery greens uses 1560 bag...

A local nursery greens uses 1560 bags of plant food annually. Green works 52 weeks per year. It costs $10 to place an order for plant food. The annual holding cost rate is $5 per b

Draw these samples on the control charts, Plot these samples on the control...

Plot these samples on the control charts and circle any observations that appear to be out of control. mean (micronsa)(n=4) minimum maximum 4.134 4.011 4.612 3.913 3.891 4.474 4.58

Explain layout need to be adjusted as demand for same goods, Base on the ca...

Base on the case study: Weldon Hand Tools; how would the layout need to be adjusted as demand for this and similar products builds up?

Explain profitable going to a foreign country, Does a company like Levi Str...

Does a company like Levi Strauss have an obligation to keep an plant open in the United States if it can be more profitable going to a foreign country? Share your reasoning

Stakeholder analysis in an organisation, Question 1: Emmott (1997) repo...

Question 1: Emmott (1997) reports that "by the 1990's the whole issue of employment relationships became much more subtle". The concentration now is on the relationship between

Explain what measures has he taken to extend the brand, What did Roy Choi d...

What did Roy Choi do to build the Kogi BBq band? What measures has he taken to extend the brand? What would further expansion hurt Roy Choi'sefforts? Why?

Explain what the earliest the project can be completed, The following table...

The following table shows the activity details of a project. What the earliest the project can be completed? Activity Days Predecessor ctivities A 4 - B 5 - C 3 A D 5 A E

Explain supplementary unemployment benefit plans, Analyze the benefits of S...

Analyze the benefits of Supplementary Unemployment Benefit Plans, and list potential scenarios when they become quite vulnerable. Address service requirements, duration, benefit fo

Explain what is the present value compounded annually, What is the present ...

What is the present value of $10000 to be received 20 years from now , if the principle is invested at 8% per year, compounded annually?

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