The Operations Manager for Shadyside Savings & Loan Orders Cash

question 15

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, 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

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Definitions:

Singular-System Approach

A method or strategy that employs a single, unified system for addressing or managing various tasks or problems.

Organizational Change

A process in which a company or organization undergoes a transformation in its structure, strategies, operational methods, or culture to improve efficiency and effectiveness.

Internal Forces

Psychological or emotional pressures that influence an individual's decisions, behaviors, or feelings from within.

External Forces

Influences originating outside an organization that can impact its operations, strategies, and outcomes.