Q. Illustrate what is the maximum number of flower pots which are held in inventory in a given ordering cycle? Depend on info below
A flower shop uses 800 clay pots a month. The pots are purchased at $2 each. Annual carrying prices are estimated at $0.60 per pot per yr also ordering prices are $20 per order. The manager has been presently using an order size of 1600 flower pots per order.