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ANNUAL DEMAND VEGGIE PIZZA PEPPERONI PIZZA CHEESE PIZZA 300000 250000 360000 PRODUCTS' STRUCTURE RAW MATERIALS VEGGIE PIZZA PEPPERONI PIZZA CHEESE PIZZA FLOUR (gr) 25 25

ANNUAL DEMAND
VEGGIE PIZZA PEPPERONI PIZZA CHEESE PIZZA
300000 250000 360000
PRODUCTS' STRUCTURE
RAW MATERIALS VEGGIE PIZZA PEPPERONI PIZZA CHEESE PIZZA
FLOUR (gr) 25 25 25
YEAST (gr) 5 5 5
VEGETABLE OIL (mlt) 5 5 5
SUGAR (gr) 2 2 2
SALT (gr) 5 5 5
KETCHUP SAUCE (mlt) 25 25 25
CHEESE (gr) 30 30 40
SWEET PEPPER (gr) 10 0 0
GARLIC (gr) 10 0 0
TOMATO (gr) 20 0 0
MUSHROOM (gr) 20 5 0
PEPPERONI (gr) 0 20 0
Assume that we have 365 days in a year PRICE per Kg SHIPMENT COST per each delivery ANNUAL HOLDING COST per unit
FLOUR 2 0.1 0.4
YEAST 20 0.12 4
VEGETABLE OIL 2.5 0.09 0.5
SUGAR 1 0.09 0.2
SALT 1 0.05 0.2
KETCHUP SAUCE 1.5 0.05 0.3
CHEESE 10 0.1 2
SWEET PEPPER 1 0.1 0.35
GARLIC 2.5 0.12 0.5
TOMATO 1 0.11 0.35
MUSHROOM 3 0.14 0.35
PEPPERONI 20 0.1 4
Formula
EOQ SQRT 2SD/H Where S= Set-up cost, D= Demand Rate, H= Holding cost
ROP Average Daily Sales X Days of Average Lead Time
Demand during Shelf Life (Annual Demand X Shelf Life)/ 365 ( Note: 365 days in a year)

Determine EOQ for each individual raw material?

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