The Materials Manager for a Billiard Ball Maker Must Periodically

question 36

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. At what point should resin be reordered?

• A) 0 kilograms remaining
• B) 50 kilograms remaining
• C) 200 kilograms remaining
• D) 400 kilograms remaining
• E) 500 kilograms remaining

---

Definitions:

Discount

In psychology, reducing the value or importance of someone else's opinions or achievements, often due to personal bias or judgment; in commerce, a reduction from the full price.

Present

The current moment or period of time.

TOTE Model

A cognitive model that stands for Test-Operate-Test-Exit, describing a process of problem-solving that involves testing a situation, operating to change it, testing the change, and exiting if the outcome is satisfactory.

Motivations

The reasons or forces that drive an individual to engage in particular behaviors or actions.