What is the number of orders per year if the manager uses, Operation Management

Assignment Help:

A flower shop uses 800 clay pots a month. The pots are purchased at $2 each. Annual carrying costs are estimated at $0.60 per pot per year and ordering costs are $20 per order. The manager has been currently using an order size of 1600 flower pots per order.

A. What additional cost is the shop incurring by using this current order size rather than the economic order quantity?

B. Other than potential cost savings, what benefit(s) would using the optimal order quantity yield?

C. What is the number of orders per year if the manager uses the current order quantity of 1600?

D. What is the number of orders per year if the manager uses the Economic Order Quantity?

E. What is the maximum number of flower pots that are held in inventory in a given ordering cycle?

F. How long will each order last (in months) if the manager uses the Economic Order Quantity?

G. Assume that the lead time for the pots is 1 month. What is the Reorder Point? Verbally, interpret the meaning of this Reorder Point.


Related Discussions:- What is the number of orders per year if the manager uses

Explain what do you think are the most important forces, What do you think ...

What do you think are the most important forces in the external environment creating uncertainty for organizations today? Do the forces you identified typically arise in the task e

Explain personal and professional lives, How can you see the integration an...

How can you see the integration and the modern management theory integrated into your own personal and professional lives? Pick only one theory for there are hundreds

Explain which path is the critical path, Given the information below: 1....

Given the information below: 1. Construct a network using the AON (Activity on Network method) like we did in class. See problem 3.4 on page 90 and its answer in the Appendix on

What is matrix organisation, What is Matrix organisation? Ans: A Mat...

What is Matrix organisation? Ans: A Matrix organisation is a combination of Project and functional organisation.

What are the advantages of the demand management strategies, What are the a...

What are the advantages of the demand management strategies? The advantages of the demand management strategies are as illustrated here: a. While ‘off peak’ quite than contr

General model of the operations function, General Model of the Operations F...

General Model of the Operations Function This figure illustrates the basic concept of the operations function. Firstly inputs are transformed (converted) to outputs with the m

Explain strategic marketing and marketing management, The major differences...

The major differences between strategic marketing and marketing management are A) The leadership style and mission B) The products manufactured C) The type of advertising

Explain what type of transmission path, What type of transmission path does...

What type of transmission path does a fixed wireless signal require? a. line-of-sight b. non-line-of-sight c. omni-directional d. code divided

Describe henry did tax work for joe electrician, Henry did tax work for Joe...

Henry did tax work for Joe electrician. Bill was $900, Hnery reduced it to $600. Joe did wrok for Henry at cost of $700. Henry gave Joe a check for $400, said remaining $300 was th

Compute the aggregate production rate, The BackPack Company produces a line...

The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, has decided that the BackPack Company must have very good customer service. She has asked you to d

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