The Materials Manager for a Billiard Ball Maker Must Periodically

Multiple Choice

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?

A) 0 kilograms remaining
B) 50 kilograms remaining
C) 200 kilograms remaining
D) 400 kilograms remaining
E) 500 kilograms remaining