Question: vision SCM030 Section B 213 100% Question 2 The Pizza Corporation is a fast food restaurant chain based in London that operates sixteen restaurants across

vision SCM030 Section B 213 100% Question 2 The
vision SCM030 Section B 213 100% Question 2 The Pizza Corporation is a fast food restaurant chain based in London that operates sixteen restaurants across the city. At the moment, each restaurant manages its inventory independently and orders supplies from the grocery wholesaler directly. The weekly demand for each of the restaurants is normally distributed with a mean of 1800 units and a standard deviation of 600 units and each unit ordered costs about 1. The fixed cost for ordering, including transportation, amounts to 90 and the company UL20/0805 Page 2 of 3 assumes an annual inventory holding cost rate (including physical holding cost and cost of capital) of 20%. The lead time between the wholesaler and the restaurants is one week i. Given that all restaurants manage their orders and deliveries independently, what should be their optimal order quantity when there are 50 weeks of operation a year? (6 marks) search acer S E 5 7 V & A a R G

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!