Question: The Operations Manager for Alpha Loan and Saving orders cash from her home office for her very popular Alpha Regent automated teller machine, which only

The Operations Manager for Alpha Loan and Saving

The Operations Manager for Alpha Loan and Saving orders cash from her home office for her very popular "Alpha Regent" automated teller machine, which only dispenses $100 bills. She estimates that this machine dispenses an average of 15530 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 $300 for clerical and armored car delivery costs, and that order lead time is 7 days. Assuming a 30-day month, at what point should bills be reordered (ROP)

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