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

question 23

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 average inventory level?

• A)20 pounds
• B)40 pounds
• C)60 pounds
• D)80 pounds
• E)100 pounds

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Definitions:

Ideas

Mental concepts or propositions held to be true by an individual or group.

Traditions

Beliefs or behaviors passed down within a group or society with symbolic meaning or special significance, often celebrated or practiced over a long period.

Gender Typing

The acquisition of a traditional masculine or feminine role.

Selection Effect

A bias in how subjects are chosen for a study or observation, affecting the validity of the conclusions.