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Scenario 11.1 - Bubble and Squeak

Question 35

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Scenario 11.1 - Bubble and Squeak
The rising popularity of bubble and squeak as a breakfast item on the menu has resulted in a steady demand for peas.Over the course of the past week,457 patrons have ordered the hearty breakfast and each serving contains a half cup of English peas.It costs two cents to hold a half cup of peas in inventory for a year and $3 to place an order (remember they come all the way from England!) .It takes two weeks to ship a container from England loaded with peas.
-If demand increases by a factor of k,the optimal lot size increases by a factor of


A) k.
B) k/2.
C) k-squared.
D) the square root of k.

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