Economic Order Quantity. Patty’s Pancakes orders pancake mix once a week. The mix is used up by the end of the week, at which point more is reordered. Each time Patty orders pancake mix, she spends about a half hour of her time, which she estimates is worth $20.

Patty sells 200 pounds of pancakes each week. The carrying cost of each pound of the mix is 5 cents per week. Should Patty restock more or less frequently? What is the costminimizing order size? How many times per month should Patty restock?