Local pizza establishment and baked at the cafeteria

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Reference no: EM1381574

Judith Thompson is the manager of the student center cafeteria. She is introducing pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost is $15 and the holding cost is $0.40 per pizza per year. What is the optimal number of pizzas Judith should order?

A) 184 pizzas

B) 9 pizzas

C) 5 pizzas

D) 28 pizzas

E) None of the above

Reference no: EM1381574

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