Sweet Tooth Inc has a thriving PEZ dispenser business. Most of their revenue comes from the variety of refill flavours they offer. Sweet tooth orders Pez refills by the case.

Each case contains 50 packages of Pez Refills and each package contains 10 pez candies. They sell each package for $2 each.

They have found that they sell on average 50,000 candies per month.

All their orders are phoned in, in the interest of speed and efficiency. They have found that the price of the phone call and related costs such as employees time, office overhead, etc. average around $20.00 per purchase order.

The annual carrying cost per package totals 10% of the cost per package.

They have also found that a 5-days lead time is required.

Do not mix up candies and packages or months and years.