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What would be the length of an order cycle

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Reference no: EM132550779

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 length of an order cycle?

a. 4 days

b. 0 days

c. 0.25 days

d. 3 days

e. 5 days

Reference no: EM132550779

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