The Operations Manager for Shadyside Savings & Loan Orders Cash

question 108

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) .48 days
• B) 2.08 days
• C) 6 days
• D) 8.4 days
• E) 14.4 days

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Definitions:

Formula Presentation

A presentation by which the salesperson follows a general outline that allows more flexibility and tries to determine prospect needs.

Repeat Purchases

The action by customers of buying a product or service again, often indicating satisfaction and loyalty to a brand.

Need-Satisfaction

A sales approach focusing on identifying and meeting the explicit needs of the customer with suitable products or services.

Highly Structured

Describes systems or processes that are organized in a clear, well-defined manner, often with strict rules or arrangements.