Question: Question 66: The operation manager for Shadyside Saving & Loan orders cash from her home office for her very popular Big Bucks automated teller machine,

 Question 66: The operation manager for Shadyside Saving & Loan orders

Question 66: The operation manager for Shadyside Saving & Loan orders cash from her home office for her very popular Big Bucks" automated teller machine, which only dispense $100 bills. She estimates that this machine dispense an average of 12,5000 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 of $200 for electrical and $100 for armored car delivery cost. Order lead times is 6 days. The manager maintain a safety inventory of 1000 bills. Assuming a 30-day month, what would be the dollar value of the average inventory level? A. $3,000 B. $100,000 C. $400,000 D. $300,000 E. $600,000

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