How much money has he been losing with this practice
Course:- Operation Management
Reference No.:- EM131134094

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Garden Variety Flower Shop uses 750 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. Calculate the optimal order size and the corresponding total cost. The manager has been ordering two months of demand (1500 pots) at a time. How much money has he been losing with this practice?

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