Ann Chovies, owner of the perfect past pizza parlor, uses 20 pounds of pepperoni

Question

Ann Chovies, owner of the perfect past pizza parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10 per order, and carrying costs are $14.6 per pound per year. Lead time for each order is 3 days, and the pepperoni itself is $3 per pound. Assume the parlor operates 365 days a year 24. If she were to order 80 pounds of pepperoni at a time, what would be the length of an order cycle? a. 0 days b. 25 days c. 3 days d. 4 days e. 5 days 25. If she were to order 80 pounds of pepperoni at a time, what would be the inventory level? a. 20 lbs b. 40 lbs c. 60 lbs d. 80 lbs e. 100 lbs F3 FS 3 4

Explanation / Answer

24) Length of the order cycle: optimal order quantity/average demand= 80/20= 4 days

So the answer is d) 4 days

25)Inventory level= Q/2= 80/2 =40lbs

So the answer is b) 40lbs

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.