The Materials Manager for a Billiard Ball Maker Must Periodically

question 34

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 daily total inventory costs, EXCLUDING the cost of the resin?

• A) $5
• B) $10
• C) $20
• D) $25
• E) $40

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Definitions:

Hardest Tasks

Tasks or challenges that are perceived as extremely difficult or demanding in terms of effort, skill, or resources required.

Delay Gratification

The ability to resist the temptation for an immediate pleasure in favor of a later, often greater, reward.

Need for Achievement

A psychological drive that motivates individuals to pursue and attain goals, often pushing them to succeed in challenging tasks or environments.

Incentive Value

The perceived worth or desirability of a reward or outcome, which motivates behavior directed towards achieving that outcome.