Explain what benefit would using the optimal order quantity, Operation Management

Assignment Help:

Garden Variety Flower Shop uses 760 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.

a. What additional annual cost is the shop incurring by staying with this order size? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

b. Other than cost savings, what benefit would using the optimal order quantity yield? (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)


Related Discussions:- Explain what benefit would using the optimal order quantity

Tasks, Tasks, Predecessors and Times - Process Design The first s...

Tasks, Predecessors and Times - Process Design The first step in the procedure is to draw a precedence diagram, shown here, the task labels and times entered in the nodes

Porter''s value system shows the organisation, Porter's value system shows ...

Porter's value system shows the organisation in terms of      The value chains of suppliers, channels and the customer.

Compute the probability that 5 stolen cars will be recover, According to po...

According to police sources a car with a certain protection system will be recovered 85% of the time. Find the probability that 5 of 7 stolen cars will be recovered.

Explain average age of the us workforce is increasing, The average age of t...

The average age of the US workforce is increasing and will continue for several years.

Explain what is the role of an organizational leader, What is the role of a...

What is the role of an organizational leader ans what significant impact should they have on a Organization in the past, present and future of a company?

Advantages, what is an advantages of operations management applied to apple...

what is an advantages of operations management applied to apple during the manufacturing of the laser equipment machine?

Describe a work breakdown structure, A Work Breakdown Structure (WBS) compo...

A Work Breakdown Structure (WBS) component is a term that simply refers to an entry in the WBS that can be at any level.

Explain leave covered under the family medical leave act, Bella, a single m...

Bella, a single mother, worked for one of Casper's Burger King restaurants, where she had a record of perfect attendance. One Saturday, her three-year old son awoke with a high fev

Explain trend-adjusted exponential smoothing model, After plotting demand f...

After plotting demand for four periods, an emergency room manager has concluded that a trend-adjusted exponential smoothing model is appropriate to predict future demand. The initi

Explain how many hours would the average laborer, In December, general moto...

In December, general motors produced 7,200 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor hour during that

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