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The Operations Manager for Shadyside Savings & Loan Orders Cash

question 80

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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, at what point should bills be reordered?


Definitions:

Distal Convoluted Tubule

Final portion of a nephron that joins with a collecting duct; associated with tubular secretion.

Active Transport

The movement of molecules across a cell membrane from an area of lower concentration to one of higher concentration, requiring energy.

Excretory System

A biological system that removes excess, unnecessary materials from an organism, allowing it to maintain homeostasis and prevent damage to its body.

Uric Acid

Main nitrogenous waste of insects, reptiles, and birds.

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