MGMT 3020 - Operations Management Assignment on inventory Management 1. Garden Variety Flower Shop uses 1200 clay pot per month. The pots are purchased at SS each. Annual earrying costs per pot per years are estimated to be 20 percent of the purehase cost, and ordering costs are $35 per order. The manager has been using an order size of 1200 flower pots. a. What is your new EOQ and the annual total cost? b. What is the total annual cost for the old way the manager used to or/ der? c. What is the percentage savings that your new EOQ has over the old method of the manager? d. What is the time between orders (months) for your order size in part (a)? 2. Suppose that you are the manager of a production depertment that uses 2400 boxes of fivets per year. The cepplier quotes you a price of 59.50 per box for an order tize of 199 boxes or less, a price of 59.00 per box for ordens of 200 to 499 boxes, and a price of 58.00 per box for an order of 500 or more boxes. You a assign obbilding cost of 20 peroent of the price to elis inventory. What order quantity would you use if the class (see below). Show all ealentrtlons annual total cost? Use the Table like we did in Total Cost Calculation for cach Candidate EOQ (show these below here): What is the time between orders (months) for your order size? 3. Perform an A-B-C classification of inventory analysis on the inventory items shown below. How would you use your classification in practice