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 3 days, and the pepperoni itself costs $3.00 per pound.
A. At what point should she reorder pepperoni?
B. If she were to order 80 pounds of pepperoni at a time, what would be the average inventory level?
C. What is the EOQ for pepperoni?