Ann Chovies, Owner of the Perfect Pasta Pizza Parlor, Uses

question 53

Multiple Choice

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 length of an order cycle?

• A)0 days
• B)0.25 days
• C)3 days
• D)4 days
• E)5 days

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Definitions:

Standards

Established norms or requirements in technical systems, usually formalized by a standards organization.

Direct Costs

The hard costs that can be measured by expenditures.

Indirect Costs

Refer to expenses not directly tied to the production of goods or services, such as administrative salaries and utilities.

HRM Effectiveness

Refers to the impact and efficiency of Human Resource Management practices in achieving organizational goals and enhancing employee performance.