Use the information below to answer the following question(s) :
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 carry 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.Assume 365 days in a year.
-At what point should resin be reordered?
A) 0 kilograms remaining
B) 50 kilograms remaining
C) 200 kilograms remaining
D) 400 kilograms remaining
Correct Answer:
Verified
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