Each minute a customer spends waiting for a pizza costs

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Based on Ignall and Kolesar (1972). Dominic's Pizza Parlor receives 30 calls per hour for delivery of pizza. It costs Dominic's $10 to send out a truck to deliver pizzas. Each minute a customer spends waiting for a pizza costs the pizza parlor an estimated $0.20 in lost future business.

a. How often should Dominic's send out a truck?

b. What would the answer be if a truck could carry only five pizzas?

Reference no: EM131106561

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