What would be the average inventory level

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Reference no: EM13968162

Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound.

A. At what point should she reorder pepperoni?

B. If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

C. What is the EOQ for pepperoni?

Reference no: EM13968162

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