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 is this the only way to get assitance, Can someone please help me w...

Can someone please help me with the questions below, Also, this is my first time usng cheggs for my assigments. Is this the only way to get assitance? or is there a search tool to

Compute the probability that the unit will not last weeks, I am falling beh...

I am falling behind in my homework and need some help please. There are three short questions: 1) A computer has three main modules that have individual reliabilities of 0.77, 0.87

Explain what contract type puts more risk on the buyer, What are the differ...

What are the different types of contracts and how do they impact risk? What contract type puts more risk on the buyer? What contract type puts more risk on the seller?

Operational strategies for balancing capacity and demand, What are the Oper...

What are the Operational strategies for balancing capacity and demand? Operational strategies for balancing supply (capacity) and demand: a. Level capacity strategies b.

Explain what is the expected value with perfect information, ABC Company, a...

ABC Company, a soft-drink vendor, has created a table of payoffs for three stocking decisions for three different states of nature: States of nature (Demand) Alternatives He

Describe what will be the duration of management conference, What will be t...

What will be the duration of a management conference duration?

Explain product-by-value analysis, Prepare a product-by-value analysis for ...

Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager, and his or

Explain importance and enforcement of consumer rights, Compare a Utilitaria...

Compare a Utilitarian and a Libertarian view on the importance and enforcement of consumer rights (to choose, to safety, to be informed, to be heard, to redress and to privacy).

Describe the graphical or the simplex lp method, Solve the following proble...

Solve the following problem using either the graphical or the simplex LP method. Max: 2X1 + 6X2 s.t. 2X1 + 2X2 ? 10 1X1 + 4X2 ? 8 X1, X2 > 0

Explain the challenges of global virtue teams, Describe the challenges of g...

Describe the challenges of global virtue teams and what types of training and tools management can proactive put in place to ensure cultural differences are taken into account.

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