Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958 in Wichita, Kansas by Dan and Frank Carney. Pizza Hut Bahrain uses 1000 pizza boxes every quarter. The cost of maintaining these boxes safely is BD 2 and the ordering cost is BD 20. The firm operates 240 days per year. What is the best order quantity EOQ for Pizza Hut? What is the total cost using the best order quantity? If they will order 500 boxes every order, will this practice be a loss to the company?

Answer rating: 100% (QA)

To calculate the Economic Order Quantity EOQ we can use the following formula EOQ sqrtfrac2DSH Where ... View the full answer