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

Define the strategic positioning by reck and long, Q. Define the strategic ...

Q. Define the strategic positioning by Reck and Long? The strategic positioning tool through Reck and Long: Reck and long looked at the various positions or approaches to su

Rules related to the design of tools and equipment, Related to the  Desig...

Related to the  Design  of Tools and Equipment: 1.        The hands should  be relieved of all work  that can  done more  advantageously by a jig a  fixture  or a foot operate

Explain an intentional relinquishment of a legal right, An intentional reli...

An intentional relinquishment of a legal right is a (n): Answer Infringement Breach of contract Waiver Termination liability

Explain differences between management and leadership, Suppose you realize ...

Suppose you realize one day that you are dissatisfied with your job. What might you do to improve your situation? What are the basic differences between management and leadership?

Explain behavior and performance with the objectives, The effectiveness of ...

The effectiveness of any compensation system to attract, retain and align employee behavior and performance with the objectives of the enterprise is dependent upon management credi

How several more hours of overtime would each worker, Games4U makes video g...

Games4U makes video games on CDs at its Old Town plant. The plant produces 800 games each day, and employs 100 workers that work 8 hours each day. They use the following resources

Describe some training needs in the work place, Discuss some training needs...

Discuss some training needs in the work place to create a positive cultural diversity work environment.

Explain collective bargaining process, Detail the five measures that unions...

Detail the five measures that unions have taken in the collective bargaining process to introduce provisions that would protect employees displaced or laid off due to technology ch

Why a project manager desires a work breakdown structure, A project manager...

A project manager desires a work breakdown structure that goes through 6 levels of detail. Level 3 through level 6 would most likely be prepared by: Answer Project sponsor

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