The Operations Manager for Shadyside Savings & Loan Orders Cash

question 29

Multiple Choice

The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine,which only dispenses $100 bills.She estimates that this machine dispenses an average of 12,500 bills per month,and that holding a bill in inventory costs 10 percent of its value annually.She knows that each order for these bills costs $300 for clerical and armoured car delivery costs,and that order lead time is six days. What is the economic order quantity?

• A)866 bills
• B)3,000 bills
• C)6,000 bills
• D)10,392 bills
• E)12,500 bills

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Definitions:

Cultural Tradition

The transmission of customs, beliefs, rituals, and practices from one generation to another, helping to maintain cultural identity within a society.

Hospice Care

Care designed to provide comfort and support to patients and their families when a life-limiting illness no longer responds to cure-focused treatments.

Terminal Illness

A disease or condition that is likely to lead to the death of the patient within a short time frame, often without the possibility of cure.

Renal Failure

A medical condition in which the kidneys lose the ability to sufficiently filter waste from the blood.