The Materials Manager for a Billiard Ball Maker Must Periodically

question 118

Multiple Choice

The materials manager for a billiard ball maker must periodically place orders for resin,one of the raw materials used in producing billiard balls.She knows that manufacturing uses resin at a rate of 50 kilograms each day,and that it costs $.04 per day to hold a kilogram of resin in inventory.She also knows that the order costs for resin are $100 per order,and that the lead time for delivery is four (4) days. If order size was 1,000 kilograms of resin,what would be the length of an order cycle?

• A)0.05 days
• B)4 days
• C)16 days
• D)20 days
• E)50 days

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Definitions:

Leisure

Free time available for enjoyment and relaxation away from one's duties or work.

Consumption

The process by which goods and services are used and expended by individuals or businesses.

Nonlabor Income

Income received from sources other than employment or work, such as investments, pensions, or gifts.

Bushel

A bushel is a unit of volume that is used primarily for measuring quantities of agricultural produce, such as grains, fruits, and vegetables.