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Management Studies

You are lucky enough to be the owner of IMSE Pizza, a new establishment in Aggieville. As such you sell 3000 pizzas every month. You buy the pizza dough in a batch of 2000 pounds, calculate using EOQ (l) Your holding cost consist of 36% per year, and the dough costs you $4 per pound.

What is the setup cost used in finding the EOQ order size?

Now, you received an offer from another dough supplier (Tony's in Salina) to give you 5% price discount if you buy the dough in quantity of 3000 pounds a batch or more. Should you accept the offer from Tony's?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92572486

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