Jackson Sheds Has Four Different Warehouse Configurations Under Study, Ranging

question 98

Essay

Jackson Sheds has four different warehouse configurations under study, ranging from four warehouses to seven warehouses (only integer values). Each warehouse has a capacity of 200 units and costs $200 to maintain over the course of a year. Demand can range from 1,000 units per year up to 2,000 units in increments of 250 units. If the system warehouse capacity is sufficient to handle the year's demand, then the per unit cost is $2 per unit, but if the warehouse capacity is insufficient, the per unit cost for each unit in excess of system capacity is $3 per unit. The likelihood for each possible demand is shown in the table.

Which warehouse configuration is best for Jackson Sheds?

---

Definitions:

Immediate Access

The capability to obtain or use resources, services, or information without delay.

Higher Response Rate

Refers to the proportion of individuals who respond to a survey or request out of the total number approached, indicating the effectiveness of the engagement strategy.

Traditional Surveys

Methods of data collection involving questionnaires or interviews to gather information from a group of people.

Panel Study

Research in which the same sample of subjects is studied at two or more points in time, usually to assess changes that occur over time.