Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 MamaMia's Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia's delivers on-average 225 pizzas each month (assume deterministic demand). Boxes cost

image text in transcribed
Question 5 MamaMia's Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia's 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. Determine: the economic order quantity, reorder point assuming no safety stock, number of orders per year, and total annual cost. Refer to your answer for question 5. Suppose the manaj of of MamaMia's current order quantity is 400 boxes. How much can be saved by adopting an EOQ versus their current Q - 400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Project Management

Authors: Kathy Schwalbe

6th Edition

978-111122175, 1133172393, 9780324786927, 1111221758, 9781133172390, 324786921, 978-1133153726

More Books

Students also viewed these General Management questions