Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Joe pizza parlor is attempting to minimize total inventory cost. The cost of each pizza is $1.25. The cost of capital is 18% and the
Joe pizza parlor is attempting to minimize total inventory cost. The cost of each pizza is $1.25. The cost of capital is 18% and the physical cost of maintaining his pizza inventory is currently running at 2% of cost. Joes pay his secretary 7.50 per hour. Joes secretary can place an order in 15 min with material and overhead cost of 15 per order. Record show , weekly pizza sales as follow
Week
1. 475
2. 525
3. 525
4. 500
5. 485
A. How many unit should joe order?
B. How often should how place each order
C. What is the Minimum TIC?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started