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Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00

Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and holding costs are 4 cents per pound per day. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound.

If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

Select one:

a.100 pounds

b.60 pounds

c.80 pounds

d.20 pounds

e.40 pounds

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