In this assignment, your challenge is to determine annual demand for each raw material, determine the economic Order Quantities (EOQ), and Re-order Levels.

In a restaurant, we are selling three types of pizzas and demands for each product, and product structures have been given in the attached table.

Please find an attached Excel filefor your review.

Please answer the following questions:

1. Determine demands for each raw material.
2. Determine the EOQ for each individual raw material.
3. Explain why these EOQs are acceptable or not acceptable?
4. Determine ROP levels based on lead time and the demand.

	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	LEAD TIME (days)	Shelf Life
FLOUR	2	0.1	0.4	7	100
YEAST	20	0.12	4	7	40
VEGETABLE OIL	2.5	0.09	0.5	10	120
SUGAR	1	0.09	0.2	10	200
SALT	1	0.05	0.2	15	120
KETCHUP SAUCE	1.5	0.05	0.3	20	40
CHEESE	10	0.1	2	2	7
SWEET PEPPER	1	0.1	0.35	1	3
GARLIC	2.5	0.12	0.5	1	20
TOMATO	1	0.11	0.35	1	3
MUSHROOM	3	0.14	0.35	1	3
PEPPERONI	20	0.1	4	3	10