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

Explain standard deviation, Under what kinds of circumstances might an orga...

Under what kinds of circumstances might an organization wish to use control limits of 2 standard deviations or even 1 standard deviation? What should it bear in mind when using the

Simultaneity of production & consumption of service product, Simultaneity o...

Simultaneity of Production and Consumption of Service Products There is no opportunity to place the service in inventory. This is not always completely, for instance, petrol i

Explain inventory tracking systems, Bill of Materials are kept current with...

Bill of Materials are kept current with changes using: a) Inventory Tracking Systems b) Engineering Change Order Systems c) Master Scheduling Systems d) Capacity Planni

Process design, Process Design New product is not realities unit they...

Process Design New product is not realities unit they are manufactured. Process design is necessary to manufacture new products. Process design is concerned with the overall

Formulate a problem as a linear programming problem, The Grand Valley Compa...

The Grand Valley Company, run by the J. Motwani family, produces two products: bed mattresses and box springs. A prior contract requires that the firm produce at least 30 mattresse

A main outcome of electronic data interchange, A main outcome of electronic...

A main outcome of electronic data interchange (EDI) is   To save paperwork by using structured electronically transmitted data.

What are the chase demand strategies, What are the Chase demand strategies?...

What are the Chase demand strategies? Chase demand strategies: It is just the opposite of a level capacity strategy. The organisation frequently chases customer demand an

List the interesting gap between consumer & service provider, 1. Look at th...

1. Look at the above table and list the interesting gaps which you observe in the 'scripts' between consumer and service provider. Answer: 1. The starting point of the servic

Define disputes and the contractual means used for resolving, What is the c...

What is the cause of disputes and the contractual means used for resolving them?

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