Estimating the optimal number

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Reference no: EM13104702

Judith Thompson is the manager of the student center cafeteria. She is introducing pizza as a menu item. The pizza is ordered frozen from a local pizza establishment and baked at the cafeteria. Judith anticipates a weekly demand of 10 pizzas. The cafeteria is open 45 weeks a year, 5 days a week. The ordering cost is $15 and the holding cost is $0.40 per pizza per year. What is the optimal number of pizzas Judith should order?
A) 184 pizzas
B) 9 pizzas
C) 5 pizzas
D) 28 pizzas
E) None of the above

Reference no: EM13104702

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