Ann chovies owner of the perfect pasta pizza parlor uses 20, Ask an Expert

Management Studies

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound.

A. At what point should she reorder pepperoni?

B. If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

C. What is the EOQ for pepperoni?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91643109

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