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Question: Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in pre…

by | Nov 30, 2023 | Posted Questions



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?

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