Mama Mia's Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia's delivers on average 200 pizzas a month. Boxes cost 20 cents each, and each order costs $10 to process. Because of limited storage space, the manager wants to charge inventory holding at 30% of the cost. The lead time is one week, and the restaurant is open 360 days per year. Determine the following:
1)economic order quantity
2)the reorder point
3)the number of order per year
4)the time between orders
5)the total annual cost
Suppose the manager of MamaMia's takes demand variability into account.