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Q. A flower shop uses 800 clay pots a month. Pots are purchased at $2 each. Annual carrying costs are approximate d at $0.60 per pot per year and ordering costs are $20 per order. Manager has been currently using an order size of 1600 flower pots per order.

Illustrate what is number of orders per year if manager uses current order quantity of 1600. Also illustrate what is number of orders per year if manager uses Economic Order Quantity?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9310480

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