Question
Suppose an ATM of a community bank dispenses $100,000 per week. Restocking the ATM costs $500. The bank has amazing opportunities for investment, so the
Suppose an ATM of a community bank dispenses $100,000 per week. Restocking the ATM costs $500. The bank has amazing opportunities for investment, so the cost of holding $1 for a year in an ATM is $1. Assume the ATM only gets restocked when it's empty, the lead time to replenish it is negligible, and that a year has 50 weeks.
How much money should be put in the ATM every time it's restocked?
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Introduction to Management Science
Authors: Bernard W. Taylor
11th Edition
132751917, 978-0132751919
