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

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. What is the economic order quantity for pepperoni?

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