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 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 six days. Assuming a 30-day month, at what point should bills be reordered?

A) 0 bills remaining
B) 417 bills remaining
C) 2,500 bills remaining
D) 10,000 bills remaining
E) 12,500 bills remaining