Answered step by step
Verified Expert Solution
Question
1 Approved Answer
***Please answer quickly** Mama Leone's Frozen Pizzas uses 51,000 pounds of cheese per year. Each pound costs $5.50. The ordering cost for the cheese is
***Please answer quickly**
Mama Leone's Frozen Pizzas uses 51,000 pounds of cheese per year. Each pound costs $5.50. The ordering cost for the cheese is $641.90 per order, and its carrying cost is $1.31 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 4 days' worth of cheese. Assuming that the lead time to receive orders of cheese is 2 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.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started