The Materials Manager for a Billiard Ball Maker Must Periodically

question 41

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 the average inventory level?

• A)50 kilograms
• B)200 kilograms
• C)500 kilograms
• D)800 kilograms
• E)1,000 kilograms

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World Price

The international market price of a good or service, influenced by global supply and demand conditions, relevant in international trade contexts.

Imported Apples

Apples that are brought into a country from abroad for sale.

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