Home / Expert Answers / Operations Management / a-flower-shop-uses-250-clay-pots-a-month-the-pots-are-purchased-for-2-each-annual-holding-cost-is-pa567

(Solved): A flower shop uses 250 clay pots a month. The pots are purchased for $2 each. Annual holding cost is ...



A flower shop uses 250 clay pots a month. The pots are purchased for $2 each. Annual holding cost is estimated to be 30 percent of purchase cost, and ordering cost is $20 per order. The manager has been using an order quantity of 250 flower pots. a. Calculate the EOQ. (Round the final answer to the nearest whole number.) EOQ pots b. Calculate the EOQ’s total annual inventory control cost. (Round the final answer to 2 decimal places.) TC $ c. What additional annual inventory control cost is the shop incurring by using the current order quantity? (Round the final answer to 2 decimal places.)



We have an Answer from Expert

View Expert Answer

Expert Answer


We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe