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Garden Variety Flower Shop uses 810 clay pots a month. The pots are purchased at $3.30 each.
Annual carrying costs per pot are estimated to be 20 percent of cost, and ordering costs are $15
per order. The manager has been using an order size of 1,750 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.) b.Other than cost savings, what benefit would using the optimal
order quantity yield (relative to the order size of 1,750)? (Use the rounded order quantity from
Part a. Round your final answer to the nearest whole percent.)

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Garden Variety Flower Shop uses 810 clay pots a month. The pots are p.pdf

  • 1. Garden Variety Flower Shop uses 810 clay pots a month. The pots are purchased at $3.30 each. Annual carrying costs per pot are estimated to be 20 percent of cost, and ordering costs are $15 per order. The manager has been using an order size of 1,750 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.) b.Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,750)? (Use the rounded order quantity from Part a. Round your final answer to the nearest whole percent.)