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A pizzeria in downtown Changloon is trying to determine the best order quantity for its pizza ingredients. The pizzeria believes it will sell 14,400 pizzas
A pizzeria in downtown Changloon is trying to determine the best order quantity for its pizza ingredients. The pizzeria believes it will sell 14,400 pizzas at an average price of RM8 per year. The store buys the ingredients for one pizza at a rate of RM1.50, and the storage cost for each pizza is RM0.80. The cost of ordering more ingredients is RM13. i. Determine the economic order quantity. (3 marks) ii. What would be the total costs for ordering the ingredients one, and five times a year? (2 marks)
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