MamaMia's Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia's delivers on-average 200 pizzas each
Question:
MamaMia's Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia's delivers on-average 200 pizzas each month (assume deterministic demand). Boxes cost 20 cents each, and each order costs $10 to process. Because of limited storage space, the manager wants to charge inventory holding at 30 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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
OM4 operations management
ISBN: 978-1133372424
4th edition
Authors: David Alan Collier, James R. Evans
Question Posted: