Question
La Zana in Sydney's North Shore is a popular pizza place offering a variety of pizzas at a reasonable price. The pizza placeprepares all the
La Zana in Sydney's North Shore is a popular pizza place offering a variety of pizzas at a reasonable price. The pizza placeprepares all the meals on the menu in-house, however sources its pizza sauce from a supplier. Annually, La Zanarequires 14,400 bottles of pizza sauce. Over the past year, the La Zana found that the daily demand fluctuates between 26 and 78 sauce bottles. Each pizza sauce bottle costs $ 2.50 and the supplier shop requires 4 days from the time of receiving the order to delivering the pizza sauce. The pizza place is open for 200 days in a year. The owner prefers to keep some pizza sauce bottles in inventory at all times, taking into account the fluctuating demand.The ordering cost for each order is $ 12 and the annual carrying cost of the pizza sauce bottles is 1 cent per bottle.
The Safety Stock for the Pizza bottles is :
Select one:
a.24 bottles
b.48 bottles
c.30 bottles
d.12 bottles
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