The Operations Manager for Shadyside Savings & Loan Orders Cash

question 75

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 length of an order cycle?

• A)0.48 days
• B)2.08 days
• C)6 days
• D)8.4 days
• E)14.4 days

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Definitions:

Developing Countries

Nations with a lower level of economic development, characterized by lower income, less industrialization, and often rapid population growth.

Infant Mortality

The death of children under the age of one year, measured by the infant mortality rate, which is the number of such deaths per 1,000 live births.

Demographic Data

Statistical data pertaining to the characteristics of a population, including age, race, gender, income, migration patterns, and population size.