MamaMia’s Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia’s delivers on-average 225 pizzas each month (assume deterministic demand). Boxes cost 23 cents each, and each order costs $12.50 to process. Because of limited storage space, the manager wants to charge inventory holding at 25 percent of the cost. The lead time is 7 days, and the restaurant is open 360 days per year, assuming 30 days per month. Determine the economic order quantity, reorder point assuming no safety stock, number of orders per year, and total annual cost.
Answer to relevant QuestionsRefer to the situation in Problem 6. Suppose the manager of MamaMia’s current order quantity is 300 boxes. How much can be saved by adopting an EOQ versus their current Q = 300? Problem 6 MamaMia’s Pizza purchases its ...Provide an argument for or against adopting a chase strategy for a major airline call center. David Christopher is an orthopedic surgeon who specializes in three types of surgery—hip, knee, and ankle replacements. The surgery mix is 40 percent hip replacement, 50 percent knee replacement, and 10 percent ankle ...The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers follow. Current inventory is 100 units. Current capacity is 960 units per ...Explain the advantages and disadvantages of SPT and EDD sequencing rules. Under what circumstances might you prefer one over the other?
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