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Average cash withdrawal at the ATM is about $40. Average number of cash withdrawals per week is about 200. The credit union estimates that the fixed cost of filling the ATM is about $100 regardless of the amount of cash put in.
-How much cash should the credit union (inventory level) keep at the ATM if its annual cost of money is 10%?
-What is the average cash inventory?
-How often should the credit union replenish the ATM? What is the elapsed time between each replenishment?
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