Question

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.1. at what point should she reorder pepperoni?80 pounds remaining40 pounds remaining60 pounds20 pounds100 pounds

Answer 1

Answer:

60 pounds

Explanation:

The computation of the reorder point is shown below:

= Daily demand for pizzas × lead time

= 20 pounds × 3 days

= 60 pounds  

The reorder point would be found out by multiply the daily demand of pizzas and the lead time which is given in the question.  

All other information which is given in the question is not relevant. Hence, ignored it