Question
MamaLeone's Frozen Pizzas uses 52,000 pounds of cheese per year. Each pound c osts $2.50. The ordering cost for the cheese is $303.80 per order,
MamaLeone's Frozen Pizzas uses 52,000pounds of cheese per year. Each pound costs$2.50. The ordering cost for the cheese is $303.80perorder, and its carrying cost is $0.62per pound per year. Calculate thefirm'seconomic order quantity(EOQ) for the cheese. MamaLeone's operates 280days per year and maintains a minimum inventory level of 4days' worth of cheese. Assuming that the lead time to receive orders of cheese is 3days, calculate the reorder point.
1. The EOQ that minimizes the total inventory costs is _________ pounds of cheese? round to nearest whole number
2. The reorder point for Mama Leone's is _____________ pounds of cheese? round to the nearest pound
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