Sameeh Pastries requires 2000 pcs of pizza dough every other month. They are spending BD 50 as order cost and BD 10 to maintain the quality of pizza. How much should they order so that they can maintain the lowest cost? a. 420.5 pcs b. 500 pcs c. 345 pcs d. 346.41 pcs e. 400 pcs

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Sameeh Pastries requires 2000 pcs of pizza dough every other month. They are spending BD 50 as order cost and BD 10 to maintain the quality of pizza. How much should they order so that they can maintain the lowest cost?

a. 420.5 pcs

b. 500 pcs

c. 345 pcs

d. 346.41 pcs

e. 400 pcs

 

Mr. Ulrich is your customer who wants wants 80,000 pcs of Item A in one week but your maximum capacity is only 45,000 pcs, with 30 workers working on normal time ( 8am to 5 pm ) . This requirement will be there for at least a year. From what is given below, which recommendation is not acceptable?

a. Hire more people and make 2 working shifts

b. Turn down the order as it exceeds your capacity

c.  All the answers given are not acceptable

d. Get additional machines

e. Get a subcontractor to help increase the capacity

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