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Garden Variety Flower Shop employs 1000 clay pots the month. The pots are bought at $3 each. Annual carrying costs for each pot are approximated to be 25% of cost, and ordering costs are $25 per order.

a. Find out the economic order quantity.

b. Evaluate the total cost of carrying and ordering clay pots.

c. If manager has been using the order size of 2,000 pots, how much can be saved per year by enhancing the inventory policy?

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M914672

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