Each minute a customer spends waiting for a pizza costs

Reference no: EM131106561

Based on Ignall and Kolesar (1972). Dominic's Pizza Parlor receives 30 calls per hour for delivery of pizza. It costs Dominic's $10 to send out a truck to deliver pizzas. Each minute a customer spends waiting for a pizza costs the pizza parlor an estimated $0.20 in lost future business.

a. How often should Dominic's send out a truck?

b. What would the answer be if a truck could carry only five pizzas?

Reference no: EM131106561

Questions Cloud

Used to characterize a fast-moving or slow-moving item : In terms of K, D, and h, what is the average length of time that an item spends in inventory before being used to meet demand? Explain how this result can be used to characterize a fast-moving or slow-moving item.

Annual ordering cost and the annual holding cost : Suppose that instead of ordering the amount Q specified by the EOQ formula, the order quantity 0.8Q is used. Show that the sum of the annual ordering cost and the annual holding cost increases by 2.5%.

Prepare the journal entries for both the date of declaration : Prepare the journal entries for both the date of declaration and the date of distribution.

What dream theory would the dream best fall under : What was the dream that you used with the Dream Dictionary about (if you are not comfortable disclosing the dream skip this question and start with the next one). What did the Dream Dictionary say about the dream's meaning?

Each minute a customer spends waiting for a pizza costs : Based on Ignall and Kolesar (1972). Dominic's Pizza Parlor receives 30 calls per hour for delivery of pizza. It costs Dominic's $10 to send out a truck to deliver pizzas. Each minute a customer spends waiting for a pizza costs the pizza parlor an ..

Do unions engage in ethical behavior please explain : Do unions engage in ethical behavior? Please explain. Provide specific examples. Historically, what factors precipitated the formation of unions? Please explain. Provide specific examples.

Prepare the journal entries for green day corporation : Prepare the journal entries for Green Day Corporation for both the date of declaration and the date of distribution.

Computco sells high-end computer workstations : Computco sells high-end computer workstations. The demand for its workstations during a month follows a normal distribution, with a mean of 400 and standard deviation of 100.

Use simulation to estimate the average annual cost : Lowland Appliance replenishes its stock of 52-inch flat-screen TVs three times a year. Each order takes 1/9 of a year to arrive. Annual demand for these TVs follows a normal distribution with a mean of 990 and a standard deviation of 40.

User Account

All Pages