2. Garden Variety Flower shop uses 750 clay pots a month. The pots a.pdf

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2. Find the work done by the force field F=<2, 3x> along the closed curve C which is made up of the quarter circle centered at the origin extending from(2, 0) to (0, 2)followed by the line segment back to (2.0) Solution 0 displacement is 0.

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2. Garden Variety Flower shop uses 750 clay pots a month. The pots are purchased at $2 each.
Annual carrying costs per pot are estimated to be 20 percent of cost, and ordering costs are $200
per order.
The manager has been using an order size of 1,500 flower pots.
There are 4 weeks in each month,12 months a year.
a.What is the Economic order quantity (EOQ)?
b.What is the total cost associated with EOQ
c.If order lead-time is two weeks (i.e., 0.5 month) and the safety stock policy is that SS=50 pots,
what is the ROP?
d.If the shop remains using the order size of 1500, what is the total annual cost?
e.Following d., what additional annual cost is the shop incurring by staying with the order size of
1500? (as opposed to using EOQ)
Solution
750 clay pots a month
$2 per pot
Annual carrying cost per pot is 20% of cost (0.20 * 2$ = 0.4)
Ordering cost are: $200
Order size: 1500 flower pots
Economic order quantity : Square root of { (2DS) / H}
Economic order quantity: Square root of { (2* (750*12) / (0.20*2) )}
Economic order quantity = 212.13
What is the total cost associated with EOQ
TC = Carrying cost + Ordering Cost
TC = (Q / 2) * H + (D/Q)* s
TC= (212.13 / 2) * (0.2*2) + ( (750*12) / 212.13)* 200
TC= 42.426 + 8485.362
TC = $8527.78
If order lead-time is two weeks (i.e., 0.5 month) and the safety stock policy is that SS=50 pots,
what is the ROP?
ROP = d(LT)
ROP = (0.5)(50) = 25
If the shop remains using the order size of 1500, what is the total annual cost?
TC = Carrying cost + Ordering Cost

TC = (Q / 2) * H + (D/Q)* s
TC = (1500/2)* (0.2*2) + (750*12) / 1500 ) * 200
TC= 300 + 1200
TC= $ 1500

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