Flower shop uses 750 clay pots a month. illustrate what, Ask an Expert

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Q. Flower shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost also ordering costs are $20 per order. The manager has been utilizing an order size of 1,500 flower pots.

Illustrate what additional annual cost is the shop incurring by staying with this order size?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9313188

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