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

Compute operations management problem, In the solutions manual for Operatio...

In the solutions manual for Operations Management problem is (b-a) ^/6 1, what are the numbers for b and a and how do you enter this in excel showig the fomulas

Learning curve concept plays vital role in location decision, This assignme...

This assignment is designed to demonstrate that the learning curve concept plays a vital strategic role in location decision. A company started making a new product simultaneously

Case study...distribution problem at rollerblade, what is the problem that ...

what is the problem that you can understand by reading the above situation? how appropriate might a just in time inventory system be for product such as roller skates

Explain what transmission technique must be implemented, If a network manag...

If a network manager wanted to connect his Ethernet LANs via ATN, what transmission technique must be implemented on a ATM link? a. TCP/IP encapsulation b. LAN emulation c

Explain introduction to optimum design, Why are there no solutions for Intr...

Why are there no solutions for Introduction to Optimum Design textbooks?

Lay out, how does an operation manager decide what layout type is most appr...

how does an operation manager decide what layout type is most appropriate for his or her business

Explain who are the key stakeholders of global green usa, Who are the key s...

Who are the key stakeholders of Global Green USA? As an advisor to its CEO, Matt Peterson, what would point some possible conflicts among the key stakeholders' interests and what s

Explain postive reinforcement and executive conditioning, A manager nodding...

A manager nodding to express to a subordinate who is making a useful comment during a staff meeting is a example of/1.equity exchange/2.postive reinforcement/3 executive conditioni

Define conflict between earning profit and being responsible, There is some...

There is sometimes a perceived conflict between earning profit and being responsible. What should CanGo do about adding violent games to their product mix? What impact might this h

What does mean owns real estate in fee simple absolute, If someone owns rea...

If someone owns real estate in fee simple absolute, what does that mean?

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