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. If order size was 1,000 kilograms of resin,what would be the length of an order cycle?
A)0.05 days
B)4 days
C)16 days
D)20 days
E)50 days

Question

Quizplus · Accepted Answer

The length of an order cycle is the time between orders. With a usage rate of 50 kilograms per day and an order size of 1,000 kilograms, the order cycle length is 1,000 kg / 50 kg/day = 20 days.

The Materials Manager for a Billiard Ball Maker Must Periodically