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. 9. If she were to order 6,000 bills at a time, what would be the dollar value of the average inventory level? A. $3,000 B. $6,000 C. $12,500 D. $300,000 E. $600,000 10. If she were to order 6,000 bills at a time, what would be the average monthly total costs, EXCLUDING the value of the bills? A. $625 B. $1,250 C. $2,500 D. $3,125 E. $37,500 11. What is the economic order quantity? A. 600 bills B. 3,000 bills C. 949 bills D. 6,215 bills E. 12,500 bills

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