Problem 12-5 (Algo)Garden Varlety Flower Shop uses 810 clay pots a month. The pots are purchased at $3.30 each. Annual carrying costs per pot areestimated to be 20 percent of cost, and ordering costs are $15 per order. The manager has been using an order size of 1,750 flowerpots.a.What additional annual cost is the shop incurring by staying with this order size? (Round your optimal order quantity to the nearestwhole number. Round all other intermediate calculations and your final answer to 2 decimal places.)Additional annual costb.Other than cost savings, what benefit would using the optimal order quantity yield (relative to the order size of 1,750)? (Use therounded order quantity from Part a. Round your final answer to the nearest whole percent.)About% of the storage space would be needed.

Given data Monthly Demand (d) = 810 clay pots Annual demand (D) = Monthly Demand× No. of months in a…

Answered: Problem 12-5 (Algo) Garden Varlety…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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