Calculate the total cost of ordering and carrying clay pots, Operation Management

Assignment Help:

1. Garden Variety Flower Shop uses 1000 clay pots a month. The pots are purchased at $3 each. Annual carrying costs per pot are estimated to be 25% of cost, and ordering costs are $25 per order.
a. Determine the economic order quantity.
b. Compute the total cost of ordering and carrying clay pots.
c. If the manager has been using an order size of 2,000 pots, how much can be saved per year by improving the inventory policy?


Related Discussions:- Calculate the total cost of ordering and carrying clay pots

Explain dual chains of command can create more problems, Some people argue ...

Some people argue that the matrix structure should be adopted only as a last resort because the dual chains of command can create more problems than they solve. Discuss. Do you agr

Explain straight-line depreciation, The expected average rate of return for...

The expected average rate of return for a proposed investment of $500,000 in a fixed asset with a useful life of four years, straight-line depreciation, no residual value, and an e

Explain which if any of the resources are over allocated, 1. Which if any o...

1. Which if any of the resources are over allocated? 2. Assume that the project is time constrained and try to resolve any over allocation problems by levelling slack. What happ

What are the advantages as well disadvantages of financing, What are the ad...

What are the advantages and disadvantages of financing via the internet?

Organizational goals, outline major benefits of organizational goals and d...

outline major benefits of organizational goals and describe the situation in which have observe the benefiys

Financial risk, the importance of the measurtement of market risk for finan...

the importance of the measurtement of market risk for financial institution

Explain critical path, Explain Critical Path. This is that sequence of ...

Explain Critical Path. This is that sequence of activities that decide the complete project duration. Critical Path is formed by critical activities. This path consumes maximum

Describe identified the problem and a technology solution, At this point of...

At this point of the project, you have identified the problem and a technology solution for the business. Now, you want the business to accept the idea. Using your text, the pre

Define what rrmc should do to counter its image, Describe what RRMC should ...

Describe what RRMC should do to counter its image problem in the community because of its decision to close the Women's Pavilion.

Describe the graphical or the simplex lp method, Solve the following proble...

Solve the following problem using either the graphical or the simplex LP method. Max: 2X1 + 6X2 s.t. 2X1 + 2X2 ? 10 1X1 + 4X2 ? 8 X1, X2 > 0

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