What additional annual cost is the shop incurring by staying

Assignment Help Operation Management
Reference no: EM13780480

Garden Variety Flower Shop uses 830 clay pots a month. The pots are purchased at $3.40 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000 flower pots.

A. What additional annual cost is the shop incurring by staying with this order size? (Round your optimal order quantity to the nearest whole number. Round all other intermediate calculations and your final answer to 2 decimal places. Omit the "$" sign in your response.)

B. Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 2,000)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent. Omit the "%" sign in your response.)

Reference no: EM13780480

Questions Cloud

Consider a piecemeal replenishment situation : Consider a piecemeal replenishment situation where the production rate is 100 units per day, the demand (consumption) rate is 4 units per day, and the economic production lot size is 500 units. Which of the following statements is true? An item exper..
Do you agree with a former presidential candidate : Do you agree with a former presidential candidate that "corporations are people, too," and thus able to claim "freedom of religion" under the First Amendment
What is the optimal stocking level : Henrique's Correa's bakery prepares all its cakes between 4am and 6am so they will be fresh when customers arrive. Day-old cakes are virtually always sold but at a 50% discount off the regular $16 price. The cost of baking a cake is $10 and demand is..
Describe how the disease is spread : How would you suggest treating patient - describe how the disease is spread - What is the most likely diagnosis and answer the questions.
What additional annual cost is the shop incurring by staying : Garden Variety Flower Shop uses 830 clay pots a month. The pots are purchased at $3.40 each. Annual carrying costs per pot are estimated to be 10 percent of cost, and ordering costs are $10 per order. The manager has been using an order size of 2,000..
What percentage of all violent crimes was not reported : According to the 2011 national crime victimization survey, approximately what percentage of all violent crimes was not reported to the police by victims
Calculate the total expenditure for each of the categories : The data in the table on the data sheet contains the operational expenditure and the budget for a small department.
Underlie policymaking in the united states : In this assignment, you will examine the ideological struggles that underlie policymaking in the United States. This includes the following:
Examine philosophical underpinnings of economic system : In this assignment, you must examine the philosophical underpinnings of the economic system and its relationship to ethics and social justice by examining income support policies.

Reviews

Write a Review

 

Operation Management Questions & Answers

  Explain the cognitive and non-cognitive abilities relating

describe the cognitive and non-cognitive abilities relating to emotional intelligence. provide an example of how you

  Main reasons why ethical problems occur in business

Isabel Arnett is CEO of Tamik, inc., a pharmaceutical company that manufactures a vaccine Called Kafluk, which supposedly provides some defense against bird flu. The company began marketing Kafluk throughout Asia. This scenario illustrates one of the..

  Use eoq to determine the order quantity

You supply 300,000 small button batteries per year to Light-My-Way, Inc., manufacturer of LED dog collars. The setup cost is $50 and the holding cost is $0.04 per year per battery. You can produce 1500 batteries per day. You ship 750 per day to Li..

  Dysfunctional aspects of the organization''s culture

Examine the most functional and dysfunctional aspects of the organization's culture. Describe the methods used to socialize new employees or members into the organizational culture.

  Vertical markets versus horizontal markets

Assess the following: spot buying versus strategic sourcing, direct materials versus indirect materials, and vertical markets versus horizontal markets.

  What are the business benefits of bi

What are the business benefits of BI (Business Intelligence) deployments and the main challenges required to extend BI tools beyond mere reporting?

  How can a pay for performance system increase motivation

How can a pay for performance system increase motivation of individual employees and improve cooperation?

  What is the eoq for raspberry syrup

What is the EOQ for raspberry syrup? If Meyer orders the EOQ quantity each time, what will be the inventory turnover rate for raspberry syrup?

  What operations strategy could dell be attempting with a

dell has recently switched from allowing customers a great deal of flexibility in designing their own computers to

  Explain both the formal and informal commuinication methods

research your chosen company nucor. find a minimum of one library source which will support your thesis in this

  Tray has a t-shirt business that buys shirts

Tray has a T-shirt business that buys shirts from a wholesaler for four dollars each and sells them to retailers for eight dollars each. He imprints each shirt with a picture of a musical artist that costs

  What does the term qualifying mean

What does the term qualifying mean? What are the four basic questions that should be answered during the qualifying process?

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