The Materials Manager for a Billiard Ball Maker Must Periodically

question 113

Multiple Choice

The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. If the order size was 1,000 kilograms of resin, what would be theaverage daily total inventory costs, EXCLUDING the cost of the resin?

• A)$5
• B)$10
• C)$20
• D)$25
• E)$40

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Definitions:

Hans Selye

A pioneering Hungarian-Canadian endocrinologist who is considered the father of the concept of stress and its effects on the body.

Cognitive Task

A task or activity that requires the use of mental processes such as perception, memory, reasoning, and problem-solving.

Jump to Conclusions

A cognitive bias that describes the action of arriving at a decision or opinion with little to no evidence or reasoning process.

Coping

Efforts to master, reduce, or tolerate the demands created by stress.