Course Solutions Uncategorized Pizzas Per Month Questions Cost Boxes Ordering Cost Eoq Lead Time Open Days Re Order Point Q34321630

Pizzas Per Month Questions Cost Boxes Ordering Cost Eoq Lead Time Open Days Re Order Point Q34321630

Pizzas Per MonthQuestionsCost ofBoxesOrdering to CostWhat is the EOQ?Lead TimeOpen DaysWhat is the re-order point?Holding CostHolding Cost Per UnitWhat is the number of orders per year?EOQ FormulaTotalAnnual CostNumber2DemandCost Per OrderMamaMia’s Pizza purchases its pizza delivery boxes from aprinting supplier. MamaMia’s delivers on-average 225 pizzas eachmonth (assume deterministic demand). Boxes cost 43 cents each, andeach order costs $12.50 to process. Because of limited storagespace, the manager wants to charge inventory holding at 25% percentof the cost. The lead time is 7 days, and the restaurant is open360 days per year, assuming 30 days per month.DividedbyHoldingCost Per UnitSquare RootRe-Order PointUnits Per DayxLead

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