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 three 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?

40 pounds

Explanation:

Given the following :

Ordering cost = $10 / order

Carrying cost = 4 cents per pound per day

Cost of pepperoni = $3 per pound

Daily demand = 20 pounds

Order quantity = 80 pounds

Average inventory level at the time in which 80 pounds of pepperoni was ordered is given as

Average inventory level is given as :

Order quantity / 2

80 pounds / 2 = 40 pounds

answer; ///blank(1); security; blank(2); freedom; good luck

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;