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Mama Leone's Frozen Pizzas uses 40,000 pounds of cheese per year. Each pound costs $5.50. The ordering cost for the cheese is $965.00 per order,
Mama Leone's Frozen Pizzas uses 40,000 pounds of cheese per year. Each pound costs $5.50. The ordering cost for the cheese is $965.00 per order, and its carrying cost is $1.93 per pound per year. Calculate the firm's economic order quantity (EOQ) for the cheese. Mama Leone's operates 240 days per year and maintains a minimum inventory level of 2 days' worth of cheese. Assuming that the lead tir to receive orders of cheese is 5 days, calculate the reorder point. The EOQ that minimizes the total inventory costs is pounds of cheese. (Round to the nearest whole number.) The reorder point for Mama Leone's is pounds of cheese. (Round to the nearest pound.)
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