Annual cost is the shop incurring by staying with this order

Assignment Help Operation Management
Reference no: EM132134273

Garden Variety Flower Shop uses 890 clay pots a month. The pots are purchased at $3.70 each. Annual carrying costs per pot are estimated to be 50 percent of cost, and ordering costs are $30 per order. The manager has been using an order size of 1,000 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.)

Additional annual cost           $

b. Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,000)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent. Omit the "%" sign in your response.)

About  % of the storage space would be needed.

Reference no: EM132134273

Questions Cloud

What is organizational sustainability : What is organizational sustainability? Why is it vital to business success?
Justices shielded from politics and political pressure : In what ways are courts, judges, and justices shielded from politics and political pressure?
What is the us opportunity cost of producing food : Assume the US has 200 million workers; what are the maximum amounts of clothing and food it can produce and consume? Explain.
Pertinent for any organization to maximize the productivity : Staff engagement- Staff engagement is pertinent for any organization to maximize the productivity.
Annual cost is the shop incurring by staying with this order : What additional annual cost is the shop incurring by staying with this order size?
Why they should place inventories closer to your facility : Describe 4 suggestions to provide suppliers why they should place inventories closer to your facility
Where do they conflict with the strategy : Describe the behaviors in your organization. Are these behaviors consistent with the business strategy? Where do they conflict with the strategy?
Propose three reforms to the investment markets : Propose three reforms to the investment markets that might reduce their exposure to systematic risk. Support your proposals with examples.
Plot the results to obtain a protein denaturation profile : Plot the results to obtain a protein denaturation profile and calculate the transition mid-point of unfolding. What is the significance of the transition curve? What does the mid-point signify? What protein folding process does the data imply?

Reviews

Write a Review

Operation Management Questions & Answers

  How does traditional adversarial relationship with suppliers

How does a traditional adversarial relationship with suppliers change when a firm makes a decision to move to a few suppliers?

  Experience within organizational bureaucracies

Think about your own experience within organizational bureaucracies.

  Explain how impleminting lean principles in an organization

explain how impleminting lean principles in an organization could help with overall riskmitigation for that organization.

  Detail two examples of what health insurance

Detail two examples of what health insurance companies decided to do to help with marketing appeal and positioning to consumers regarding choices and selection of a health care plan

  Create chart to indicate breakeven point for cash flows

Use the following cash flow information to perform a financial analysis to determine if a new Information Systems project should be implemented. The duration of the projected cost and the retunes from the project are distributed over a five-year peri..

  Minimizes average ordering-carrying costs

You just computed the EOQ for an inventory item using the (Q,R) system, and your answer is Q = 315 units. The item in question comes in boxes of 100, so you will need to round your answer. Which of the following presents the more valid logic: Round t..

  What is the current maximum output

Hiring a new person turns out to be very expensive, so Susan decided not to hire her. Instead, Susan decided to cross-train all the 4 current workers. After cross training, each worker can work on all the 4 stages. What is the capacity of Susan's ..

  Schedule the regular maintenance by his janitorial engineers

Bart Simpson, a manager of janitorial services at Wombat University, must schedule the regular maintenance by his janitorial engineers.

  About clinical and financial information systems strategies

Post a discussion on EMRs & Clinical Integration: How do private payers play into your thinking about clinical and financial information systems strategies?

  Would that use be exempt in alaska or missouri

Would that use be exempt in Alaska or Missouri? Would it matter who accrued the revenue from the parking garage or what feeds were charged?

  Essential features of a project plan

Which project progress technique includes the essential features of a project plan, budgeted cost of work scheduled and budgeted cost of work performed?

  Partial measure productivity and multifactor productivity

Describe the differences and similarities between partial measure productivity, multifactor productivity, and total measure productivity and provide an example where each would be used by the operations manager.

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