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 the three forms of ownership, Answer the following questions on the...

Answer the following questions on the Topic of Forms of Business Ownership 1. Describe the three forms of ownership. Describe two advantages and two disadvantages of each. 2.

Why scheduling resources is important, Of the six reasons that scheduling r...

Of the six reasons that scheduling resources is important, select which one of the six reasons appears to be the top priority and justify your position.

Explain interest rate risk, Please give a detailed explanation on the follo...

Please give a detailed explanation on the following scenario: You are a swap dealer and know that XYZ County finance director is clueless about how to conduct interest rate risk ma

Define what do you think will happen to hrm in the future, What do you thin...

What do you think will happen to HRM in the future? What do you think of this prediction for HRM? Is it likely to come true? If so, why? If not, why not? Cited/References

Explain what is the makespan and machine idle time, Sequence the jobs shown...

Sequence the jobs shown below by using the Gantt chart. Assume that the move time between machines in one hour. Sequence the jobs in priority order 1,2,3,4. Job Work Center/Machine

Explain what is the assembly line efficiency, An assembly line with 30 acti...

An assembly line with 30 activities is to be balanced. The total amount of time to complete all 30 activities is 42 minutes. The longest activity takes 2.4 minutes and the shortest

Explain what goes wrong in organizations, During the past five weeks, you h...

During the past five weeks, you have written several papers examining various organizational behaviour problems that materialize in organizations. Review all of those papers and ot

Explain marketing to customers and consumers, Discuss the value of marketin...

Discuss the value of marketing to the consumer, the stakeholder and stockholder. Address the following: a. the value you place on marketing b. the value of marketing to customers a

Impact of multinational enterprises to their firm boundaries, Multinational...

Multinational enterprises (MNEs) have an impact far beyond their firm boundaries. Assume you are working for a small firm that supplies a product or service to an MNE. How might yo

How to compute capacity utilization rate last of a month, 1. A manufacturin...

1. A manufacturing shop is designed to operate most efficiently at an output of 550 units per day. In the past month the plant produced 490 units. What was its capacity utilization

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