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What would be the average inventory level

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Reference no: EM132550803

Question - Ann Chovies, owner of the Perfect Pasta Pizza Parlour, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and holding 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.

If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?

a. 100 pounds

b. 60 pounds

c. 80 pounds

d. 20 pounds

e. 40 pounds

Reference no: EM132550803

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