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

Computer intagration, impact of computer integration in operation managemen...

impact of computer integration in operation management

Deliberate end users of health data, Identify and deliberate 5 end users of...

Identify and deliberate 5 end users of health data. Be sure to discuss what type of data they might be interested in knowing.

Explain most important concepts or knowledge that you gained, 1) Do you thi...

1) Do you think that the ISS Clinic investment in electronic medical records added value for the organization? How would you recommend measuring this "value"? If you do not think t

Explain effectiveness change as an organization grows, The __________ _____...

The __________ ____________ ___________ approach to success suggests that measures of effectiveness change as an organization grows. Answer

Explain in your opinion are the protections necessary, Identify and discuss...

Identify and discuss each of the warranty protections that apply to the sale of goods under Article 2A of the Uniform Commercial Code (UCC). Provide an example for each that is not

Scheduling, external factors affecting schedulling

external factors affecting schedulling

Describe any supplementary information needed by pseudocode, 1. Write pseud...

1. Write pseudo code that represents the abstract functions of the enqueue and dequeue operations. Define and explain any supplementary information needed by your pseudo code. 2. R

Demand curve to estimate the consumer surplus, Demand curve to estimate the...

Demand curve to estimate the consumer surplus: Adam's demand curve for commodity X is: XA = 10 - 2Px . Betty's demand curve for commodity X is: XB = 10 - 3Px . (a) What is

Determine control limits for a c-chart and np-chart, 1. If, instead, a cons...

1. If, instead, a constant sample size of 100 is chosen, determine the np-chart control limits. A later sample produces 15 defectives: what conclusion can be drawn?  2. 1000 bot

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