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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.)
If the lot size is 3000, the sample size of 140, and the probability of accepting the lot is 0.798. What is the ATI for this quality level shipment?
Formulate a spreadsheet model that will give the profit in part b for any of the two numbers. Use the Excel goal seek command to calculate the break-even point found in part a.
For years, David and Evie Wexler of The Little Guys Home Electronics had many ideas about how to improve the home electronics store in which they were working, but could not put them into action.
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Jennifer enjoys her current job but she wants to manage her own business at some point in her career. She is an avid chef, having had some experience in college and afterwards
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