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Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses exactly 1 2 pounds of pepperoni each day in preparing pizzas. The owner uses continuous

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses exactly 12 pounds of pepperoni each day in preparing pizzas. The owner uses continuous review inventory tracking system. Order costs for pepperoni are $12.00 per order, and carrying costs are 2 cents per pound per day. Lead time for each order is 6 days. Assume the pizza parlor works 365 days a year.
What is the total annual cost of inventory (holding + ordering) if EOQ is used for ordering?
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1752
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365

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