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Ann Chovies, owner of the Perfect Pasta Pizza Parlor, wants to calculate her reorder point. Her average usage is 20 pounds of pepperoni each day

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, wants to calculate her reorder point. Her average usage is 20 pounds of pepperoni each day with an average lead time of 3 days.

  1. What is the reorder point with no variability in either usage or lead time?
  1. 20 pounds
  2. 40 pounds
  3. 60 pounds
  4. 80 pounds
  1. What is the level of safety stock if usage can be as high as 26 pounds per day?
  1. 15 pounds
  2. 18 pounds
  3. 21 pounds
  4. 24 pounds
  1. What is the level of safety stock if the lead time can be as high as 4.5 days?
  1. 10 pounds
  2. 20 pounds
  3. 30 pounds
  4. 40 pounds

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