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 how might you use quality tools to determine, a) Determine the valu...

a) Determine the value of the p-bar, the mean fraction defective. Then determine the control limits for the p-chart using 99.73% confidence level (3 standard deviations). Is this p

Explain sell products to customers, Put the following business functions in...

Put the following business functions into a Functional Catalogue. 1. Sell products to customers 2. Determine which products to sell 3. Manage Equipment to hire Order produ

Explain prohibiting the replacement of economic strikers, What are the econ...

What are the economic and social consequences of prohibiting the replacement of economic strikers?

Explain what does the project portfolio illustrate, What does the project p...

What does the project portfolio illustrate? How might it be useful to management?

Activities and advantage that providing facility to customer, Consider the ...

Consider the Gleneagles Hotel in Scotland - it is unique, not part of a chain. It is a six star hotel with world class sports facilities with two championship golf courses, which h

Miss.., Explain what might happen if energy costs increase in future at Nor...

Explain what might happen if energy costs increase in future at NorSal Trondheim

Explain why are company/organizational politics important, Why are company/...

Why are company/organizational politics important to a manager?

Explain employees explicit rights to free speech, Giving employees explicit...

Giving employees explicit rights to free speech, just cause dismissal, and information are three possibilities for transforming U.S. labour law.

Describe how the eoq technique helps, Explain how the EOQ technique helps e...

Explain how the EOQ technique helps explain the following: All things being equal, the production inventory quantity will be larger than the economic order quantity.

Explain organizational culture serves in organizations, Organizational cult...

Organizational culture serves what purpose in organizations?

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