1. 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 hold 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 (4) days. What is the economic order quantity for resin?

   		500 kilograms
   		100 kilograms
   		1,000 kilograms
   		250 kilograms
   		50 kilograms

2. 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 hold 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 (4) days. Without allowing for safety stock, what reorder point should be used to reorder resin?

   		400 kilograms remaining
   		0 kilograms remaining
   		50 kilograms remaining
   		200 kilograms remaining
   		500 kilograms remaining

3. 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 hold 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 (4) days. If order size was 1,000 kilograms of resin, what would be the length of an order cycle?

   		20 days
   		50 days
   		16 days
   		0.05 days
   		4 days

4. 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 hold 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 (4) days. If the order size was 1,000 kilograms of resin, what would be the average inventory level?

   		50 kilograms
   		500 kilograms
   		200 kilograms
   		1,000 kilograms
   		800 kilograms

5. 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 hold 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 (4) days. If the order size was 1,000 kilograms of resin, what would be the total daily holding costs?

   		$5
   		$10
   		$25
   		$20
   		$40

Consider 365 days in a year.