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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?

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