The Operations Manager for Shadyside Savings & Loan Orders Cash

Multiple Choice

The Operations Manager for Shadyside Savings & Loan orders cash from her home office for her very popular "BIG BUCKS" automated teller machine,which only dispenses $100 bills.She estimates that this machine dispenses an average of 12,500 bills per month,and that holding a bill in inventory costs 10 percent of its value annually.She knows that each order for these bills costs $300 for clerical and armoured car delivery costs,and that order lead time is six days. Assuming a thirty-day month,if she were to order 6,000 bills at a time,what would be the length of an order cycle?

A) 0.48 days
B) 2.08 days
C) 6 days
D) 8.4 days
E) 14.4 days