Compute the following: 1. Warehousing firm Case: Firm has a warehouse in Gurgaon and a firm rents out capacity for a month as a unit of time. It has physical warehousing space for storing 50000 MT of goods and is trying to decide on how much capacity to reserve for spot market customers for a coming December month. Forward market: Unlimited demand, market prices are Rs. 150 per MT, spot markets prices are 200 per MT. Demand for warehousing capacity in spot market in December follows normal distribution with mean demand being 10000 MT with standard deviation of demand being 3000 MT. Compute the optimum reserve capacity for spot market.

Compute the following: 1. Warehousing firm Case: Firm has a warehouse in Gurgaon and a firm rents out capacity for a month as a unit of time. It has physical warehousing space for storing 50000 MT of goods and is trying to decide on how much capacity to reserve for spot market customers for a coming December month. Forward market: Unlimited demand, market prices are Rs. 150 per MT, spot markets prices are 200 per MT. Demand for warehousing capacity in spot market in December follows normal distribution with mean demand being 10000 MT with standard deviation of demand being 3000 MT. Compute the optimum reserve capacity for spot market.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1PB: Variety Artisans has a bottleneck in their production that occurs within the engraving department....

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