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MamaMias Pizza purchases its pizza delivery boxes from a printing supplier. MamaMias delivers on average 225 pizzas each month (assume deterministic demand). Boxes cost 43
MamaMias Pizza purchases its pizza delivery boxes from a printing supplier. MamaMias delivers on average 225 pizzas each month (assume deterministic demand). Boxes cost 43 cents each, and each order costs $12.50 to process. Because of limited storage space, the manager wants to charge inventory holding at 25 percent of the cost. The lead time is 7 days, and the restaurant is open 360 days per year, assuming 30 days per month.
- Draw a graph that sows the relationships among inventory carrying (holding) cost, order cost, and total annual cost.
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