What is the optimal order quantity


Problem

Sammy's is the hot new lunch spot that sells peanut butter and jelly sandwiches. The sandwiches are made from two slices of artisanal bread, which they order from Dave's Killer in loaves. Each loaf contains twenty slices and costs $3 per loaf. Sammy's sells one hundred sandwiches a day. It costs eighty cents to hold a load of bread each day since freshness is important in baking. It costs $3 to place an order. What is the optimal order quantity?

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Supply Chain Management: What is the optimal order quantity
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