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Garden Variety Flower Shop uses 1200 clay pots per month. The pots are purchased at $5 each. Annual carrying costs per pot per year are

  1. Garden Variety Flower Shop uses 1200 clay pots per month. The pots are purchased at $5 each. Annual carrying costs per pot per year are estimated to be 20 percent of the purchase cost, and ordering costs are $35 per order. The manager has been using an order size of 1200 flower pots.
    1. What is your new EOQ and the annual total cost?

  1. What is the total annual cost for the old way the manager used to order?

  1. What is the percentage savings that your new EOQ has over the old method of the manager?

  1. What is the time between orders (months) for your order size in part (a)?

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