Judith Thompson,the Manager of the Student Center Cafeteria,has Added Pizza

question 32

Multiple Choice

Judith Thompson,the manager of the student center cafeteria,has added pizza to the menu.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.The pizza vendor has a 4-day lead-time and Judith wants to maintain 1 pizza for safety stock.What is the optimal reorder point?

• A)10
• B)8
• C)4
• D)9
• E)None of the above