Question: I ONLY HAVE 25 MINUTES FOR THIS QUESTION, PLEASE HELP OUT! Bronc Pizza (BP), uses 20 pounds of pepperoni each day in preparing pizzas. Ordering
I ONLY HAVE 25 MINUTES FOR THIS QUESTION, PLEASE HELP OUT!
Bronc Pizza (BP), uses 20 pounds of pepperoni each day in preparing pizzas. Ordering cost for pepperoni is $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is 3 days. Broncs Pizza is open 365 days a year. a. Determine the optimal order quantity. b. How many orders will be placed in one year? c. Determine the total annual cost if the optimal order quantity is used? d. If BP were to order 125 lbs of pepperoni instead of the optimal order quantity, what would be her total annual cost? e. Determine the reorder point.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
