The Materials Manager for a Billiard Ball Maker Must Periodically

question 55

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. What is the economic order quantity for resin?

• A)50 kilograms
• B)100 kilograms
• C)250 kilograms
• D)500 kilograms
• E)1,000 kilograms

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