The Operations Manager for Shadyside Savings & Loan Orders Cash

question 80

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 carrying a bill in inventory costs 10 percent of its value annually. She knows that each order for these bills costs $300 for clerical and armored car delivery costs, and that order lead time is six days. Assuming a 30-day month, at what point should bills be reordered?

• A)0 bills remaining
• B)417 bills remaining
• C)2,500 bills remaining
• D)10,000 bills remaining
• E)12,500 bills remaining

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Definitions:

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A predisposition to seek novel experiences, look for thrills and adventure, and be highly susceptible to boredom.

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