Answer:
The correct answer is 11 pizza.
Explanation:
According to the scenario, computation of the given data are as follows:
Weekly demand = 10 pizzas
Safety stock = 1 pizza
Let cafeteria works 5 days a week, then daily demands = 10 ÷ 5 = 2 pizza per day
Lead time = one week = 5 days working.
So, we can calculate the optimal reorder point by using following formula:
Optimal reorder point = (Daily demand × Lead time) + Safety stock
By putting the value, we get
Optimal reorder point = ( 2 × 5) + 1
= 10 + 1
= 11 pizzas.