The Operations Manager for Shadyside Savings & Loan Orders Cash

question 114

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. If she were to order 6,000 bills at a time,what would be the dollar value of the average inventory level?

• A)$3,000
• B)$6,000
• C)$12,500
• D)$300,000
• E)$600,000

---

Definitions:

Informative

Designed to provide useful information and increase knowledge on a particular subject.

Sales

The exchange of a commodity for money; the action of selling something.

Patterns of Organization

Structured ways in which text or information is arranged and presented to enhance understanding and coherence.

Pro/con

A comparison that evaluates the advantages and disadvantages of a specific matter.