The Operations Manager for Shadyside Savings & Loan Orders Cash

question 18

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 average monthly total costs, EXCLUDING the value of the bills?

• A)$625
• B)$1,250
• C)$2,500
• D)$3,125
• E)$37,500

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Definitions:

Exceptional Expertise

A high level of specialized knowledge or skill in a particular domain, significantly surpassing the ordinary.

Executives

Individuals who hold senior management positions within an organization, responsible for decision-making and strategic direction.

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The process of assessing or examining something in a way that is not influenced by personal feelings, interpretations, or prejudice.

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A well-defined understanding of one's own identity, values, and beliefs.