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

A Make or Buy Analysis, A Make or Buy Analysis Managers at Wagner Fabrica...

A Make or Buy Analysis Managers at Wagner Fabricating Company are reviewing the economic feasibility of manufacturing a part that it currently purchases from a supplier. Forecas

Define the functional department integration, Q. Define the functional depa...

Q. Define the functional department integration in information system. All functional departments are integrated within one holistic information system. Well integrating manufa

Explain perspective of project manager to avoid the obstacle, Analyze why i...

Analyze why it is important to address risk through the entire project life cycle. Identify three possible negative results that can occur if an organization fails to address risk

What is the objective under jit and time-based competition, _____ is the ob...

_____ is the objective under JIT and time-based competition. WIP reduction Material velocity Lead-time reduction Decreasing material wait time

Explain mangers and their companies currently performing, How are these man...

How are these mangers and their companies currently performing?

What is industrial mnagement, What is industrial mnagement? Explain. ...

What is industrial mnagement? Explain. Industrial Management: Industrial Management includes guidance, leadership and control or efforts of a group of individuals toward sev

Performance and productivity measurement, Performance and Productivity Meas...

Performance and Productivity Measurement The Performance and Productivity Measurement is divided into two parts: ? Performance measurement and ? Productivity measu

Line balancing, what do you understand by line balancing what happens if ba...

what do you understand by line balancing what happens if balance doesn''t exist?

Divide items according to category, Drop items into the correct category un...

Drop items into the correct category under "goods company or service company" belonging to which of the 4P's: Goods Company Service Company Product: Price: Place: Pr

Production efficiencies and reducing unit costs, A manufacturer concerned m...

A manufacturer concerned mainly with production efficiencies and reducing unit costs is known as Production oriented.

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