Question: Which inventory model would you use for the following situation? Pizza Y is a longstanding restaurant with loyal customers and a known, constant demand rate.
Which inventory model would you use for the following situation?
Pizza Y is a longstanding restaurant with loyal customers and a known, constant demand rate. Their flour is sourced local by a vendor. The flour vendor always holds a large safety stock of flour which allows them to deliver flour the same day as orders are placed. Due to this convenience, the flour vendor charges $100 per order. Pizza Y can only hold so much inventory so places replenishment orders throughout the year.
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