What additional annual cost is the shop incurring

Assignment Help Operation Management
Reference no: EM1392865

Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying cost per pot are estimated to be 30 percent of the cost and ordering costs are $20 per order. The manager has been using an order size of 1500 flower pots.

a. What additional annual cost is the shop incurring by staying with this order size?

b. Other than cost savings, what benefit would using the optimal order quantity yield?

Please explain when answered so I can understand it.

Reference no: EM1392865

Types of communication technologies

Assume that you are working on a one-year project that involves about 20 team members and many different stakeholders working across the globe. Even though your team created a

Escalation of commitment to an ineffective course of action

Describe a situation in which you experienced escalation of commitment to an ineffective course of action. What did you do about it? Do you wish you had handled it differently

Describe the two types of value-based pricing

What factors, influences and/or motives might encourage managers and leaders to overdiversify their firm? Why do firms use cross-border strategic alliances? In your own words,

Optimal order size and minimum total annual inventory cost

Kroft Foods makes cheese to supply to stores in its area. The dairy can make 350 pounds of cheese per day, and the demand at area stores is 205 pounds per day. Each time the d

Qbout the regulatory affairs

As the Chief Talent Officer(CTO) for a large urban city with a population of 1,000,000(+), you are responsible for the city meeting all compliances and regulations. You must b

Describe how the concepts of leadership and management

Describe how the concepts of leadership and management differ from each other. In what areas do they overlap? Explain how the goals of management and leadership may sometime

Essay as the birth of public administration

Many scholars regard Woodrow Wilson's essay as the birth of Public Administration as a discipline. The Politics/Administration dichotomy remains today as one of the underlying

On the job success and professional success

Using a single example or multiple examples from your professional life now and/or in the past, or from your research, answer the following questions. How do you use critical

Reviews

Write a Review

 
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