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 about the managing inventory, Q. Explain about the managing invento...

Q. Explain about the managing inventory. Managing inventory (stock): Retailers buy stock or inventory and sell that to customers; that manufacturers buy raw material and ele

Connected flow and disconnected flow system, Connected Flow and Disconnecte...

Connected Flow and Disconnected Flow System Such systems deliver very low unit costs, they are vulnerable; because of the absence of work-in-progress buffers, if one process f

Determine the full study sample size, 1. An element of work has been measur...

1. An element of work has been measured 6 times, with the following results (units of 0.01 minutes): 18, 20, 19, 21, 19, 22. What should be the full-study sample size?  Answer:

Explain importance of strategic management, In light of the various theorie...

In light of the various theories of Strategic Management and Competition touched on in this course (e.g., the Resource Model of the Firm, internal/external analysis, SWOT, Value Ch

Describe the biggest organizational managerial mistake, • Determine the big...

• Determine the biggest organizational managerial mistake you have seen or read about and determine how this mistake affected the organization. • Discuss ways to ease the transi

Make a fictional company and develop a memo to communicate, Create a fictio...

Create a fictional company and develop a memo to communicate the importance of a business continuity plan to the board of directors. The completed assignment should be at least 25

Describe why operational efficiency is so important, Explain why operationa...

Explain why operational efficiency is so important to Net Income, Return on Capital and Income.

As a result of testing 20, As a result of testing 20,00 electric bulbs manu...

As a result of testing 20,00 electric bulbs manufactured by a company it was found that the lifetime of the bulbs was normally distributed with a mean of life of 2040 hours with st

Explain services from goods, Which of the following is not a characteristic...

Which of the following is not a characteristic that distinguishes services from goods? Service jobs are unskilled A service is intangible Services are perishable Services are heter

Explain the management-research question hierarchy, Build the management-re...

Build the management-research question hierarchy for penton media

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