How much money should be put in the atm every time, Project Management

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How much money should be put in the atm every time

Problem

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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Project Management: How much money should be put in the atm every time

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Project Management: How much money should be put in the atm every time

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