The Italian eatery at the Student Union orders pre-made, frozen calzones from a gourmet food distributor....

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The Italian eatery at the Student Union orders pre-made, frozencalzones from a gourmet food distributor. They cost $2.50 apiece.Ordering costs are $10 per order, and orders always take 4 days toarrive. The demand over a term (for which the eatery is open 100days) averages 80 calzones a day, with a standard deviation of 20calzones per day. Holding costs are 10% of the Eatery’s purchaseprice.
a) What is the economic order quantity for calzones?
b) if the management has specified that the risk of a stock outduring a cycle is 15.87%? What is the Reorder point?
c) What is the annual holding costs and annual ordering costs ifwe use the EOQ?
d) The Eatery has decided to make calzones themselves. These aremade periodically in large batches, and everything not used thatday is frozen. The daily production rate, p, is 160 calzones.Assume that the holding cost, H, is now $.40/calzone per term andS, the setup cost, is $16 per run. All other parameters remainunchanged. What is the EPQ, and how often do we start a productioncycle? How many days do we run production? Please provide writtenwork with formulas (not excel)
Please post written work on how you got the answer not justexcel.

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ANNUAL DEMAND 8000 ORDERING COST 10 HOLDING COST 025 COST PER UNIT 25 LEAD TIME 4 EOQ SQRT2 D S H WHERE D DEMAND S ORDERING COST AND H HOLDING COST SQRT2 8000 10 025 800 2 SERVICE LEVEL 1 STOCKOUT RISK 1 1587100 See Answer

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