Business, 29.03.2021 16:10, torrencek1
2. (Total 25 points) The Garden-variety flower shop uses 9600 clay pots per year. The pots are
purchased at $25 each. The annual holding costs are estimated to be 5.2% of unit cost, and
ordering costs are $60 per order.
(A) (10 points) Determine the economic ordering quantity (EOQ).
(B) (3 points) If EOQ is used for ordering, what will be the total holding cost per year?
(C) (2 points) What is the length of ordering cycle in days?
(D) (10 points) What will be additional cost per year if the manager adopts a policy of
ordering 800 units per order?
Answers: 3
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2. (Total 25 points) The Garden-variety flower shop uses 9600 clay pots per year. The pots are
purc...
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