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:

Barbecue Sauce

A flavorful condiment made from ingredients like tomato, vinegar, sugar, and spices, used to marinate or top various meats.

Mason Jars

Glass jars used for preserving foods, often featuring a screw top or airtight seal.

Demand Variability

Fluctuations in customer demand that occur over time, affecting inventory levels, production schedules, and supply chain planning.

Club Sponsor

An individual or organization that provides support, often financial, for a club's events, activities, or operations, usually in exchange for advertising or publicity.