Optimal order quantity yield

Assignment Help Operation Management
Reference no: EM131989328

1. Garden Variety Flower Shop uses 770 clay pots a month. The pots are purchased at $3.10 each. Annual carrying costs per pot are estimated to be 40 percent of cost, and ordering costs are $25 per order. The manager has been using an order size of 1,250 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 1,250)? (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: EM131989328

Questions Cloud

Find the optimal run size : The cost to prepare the equipment for producing hot dogs is $67. Annual holding costs are 47 cents per hot dog. The factory operates 297 days a year.
What is bradleys year two adjusted gross income : Bradley had sufficient amounts at risk for the rental property and the partnership. What is Bradley's Year 2 adjusted gross income?
How much in new fixed assets are required : How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at ltd capacity.
Discuss the risks to both the plan sponsor and plan bene : Discuss the risks to both the plan sponsor and plan bene ciaries under the four types of pension plans.
Optimal order quantity yield : Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,250)?
Explain the impact on the overall money supply : BUECO5903 - BUSINESS ECONOMICS - Illustrate and explain with diagrams the difference between demand-pull and cost-push inflation
Are the companys revenues tied to one key customer : The American Association of Individual Investors suggests that investors consider the qualitative factors below when evaluating a company.
Implementation of lean or jit : Concerns of JIT: What do you think can be the top managers' concerns about the implementation of Lean or JIT?
What proportion of the rubber extruder will be : If the extruder setting is accurate, what proportion of the rubber extruder will be with specifications?

Reviews

Write a Review

Operation Management Questions & Answers

  Develop forecasts using a five-year moving average

Develop forecasts using A five-year moving average and A weighted moving average model with weights of 0.1, 0.1, 0.2, 0.3, and 0.3 for years 1 through 5 respectively.

  Most is departments have a backlog of work

Most IS departments have a backlog of work. Is the System Development Life Cycle a good idea or does it just add additional delays?

  Reinforce new culture of teamwork and collaboration

Suppose you are asked by senior officers of a city government to identify ways to reinforce a new culture of teamwork and collaboration.

  Compute cp and cpk for this process and interpret

Proper smoking of meat requires maintaining a smoker temperature in the range 200 to 225 degrees Fahrenheit. Suppose the temperature in my smoker currently varies around a mean m = 210 degrees, with standard deviation s = 4 degrees. Compute Cp and Cp..

  How can job analysis make staffing more strategic

What advice would you give such a company to help them get the benefits a job analysis has to offer without wasting unnecessary time and resources.

  What is the eight month forward rate for one dollar

What does this indicate about the market's inflation expectations in Japan compared to the US?

  Difference between manufacturing and service operations

List several of the major differences between manufacturing and service operations and then articulate the importance of a strong manufacturing base to the overall economy.

  How does wells fargo compare to its competitors

Research and explain how does Wells Fargo compare to its competitors?

  Highest unit cost to lowest unit cost the type of processes

List in order of the highest unit cost to lowest unit cost the type of processes. Describe how flexibility and variety changes for each. give an example for each. When considering capacity planning, why does a firm need to consider both the short-ter..

  What is the optimal production quantity for the card

Wholemark is an internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.05 per card, and the cost of printing is $0.15 per card. The company receives $2.15 per card s..

  Develop high-level analysis of clients manufacturing process

SBS Seating manufactures leather seating that consists of various components, such as frames; electrical parts (heating and comfort features); padding; and leather sewing (final assembly). Each of these components is developed at separate location..

  Pieces of information deals with job content

Which of the following pieces of information deals with job content?

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