Question: National Bank operates a network of automated teller machines ATMs
National Bank operates a network of automated teller machines (ATMs). Cash withdrawals at an ATM aver-age about $ 80. The bank estimates that the fixed cost of filling an ATM with cash is about $ 100 regardless of the amount of cash put in. Average numbers of cash withdrawals per week is about 150. How much cash should the bank keep at an ATM if its annual cost of money is 10%? How often should the bank replenish an ATM?
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