A wholesaler has a warehouse that contains perishable items (e.g. food commodities). The warehouse contains dead stock, i.e. inventory that does not turn over/does not sell. No in bound truckloads arrive at the warehouse either. The items in the warehouse have an average commodity lifetime. The lifetime of an item refers to its useful life, i.e. the time during which it remains usable. The following stock and flow diagram with a feedback loop describes the decay of the stocked items: stock of commodities outflow average commodity lifetime The "stock of commodities" is the number of perishable items that are stored in the warehouse. The "average commodity lifetime" is the average lifetime (measured in days) of an item. The "outflow" is the rate at which the stored items go bad (i.e. become spoiled) and it is given by the following expression: outflow = stock of commodities/average commodity lifetime (items/time unit). Question 2.1 (15 %) If the stock of commodities is initially 650 (items) and the average commodity lifetime is 20 (days) how many good items will there be in the warehouse: - at the end of day 5, i.e. t= 5? - at the end of day 24, i.e. t = 24? Question 2.2 (15%) If the stock of commodities is initially 650 (items) and the average commodity lifetime is 40 (days) how many good items will there be in the warehouse: - at the end of day 22, i.e. t = 22? at the end of day 43, i.e. t = 43? Question 2.3 (20%) Let the initial stock of commodities be 650 (items) and the average commodity lifetime 10 (days). If the value of each stored item is 8 euro then what is the rate with which the wholesaler loses money (due to items that go bad): - at the end of day 7, i.e. t = 7? - at the end of day 8, i.e. t = 8? A wholesaler has a warehouse that contains perishable items (e.g. food commodities). The warehouse contains dead stock, i.e. inventory that does not turn over/does not sell. No in bound truckloads arrive at the warehouse either. The items in the warehouse have an average commodity lifetime. The lifetime of an item refers to its useful life, i.e. the time during which it remains usable. The following stock and flow diagram with a feedback loop describes the decay of the stocked items: stock of commodities outflow average commodity lifetime The "stock of commodities" is the number of perishable items that are stored in the warehouse. The "average commodity lifetime" is the average lifetime (measured in days) of an item. The "outflow" is the rate at which the stored items go bad (i.e. become spoiled) and it is given by the following expression: outflow = stock of commodities/average commodity lifetime (items/time unit). Question 2.1 (15 %) If the stock of commodities is initially 650 (items) and the average commodity lifetime is 20 (days) how many good items will there be in the warehouse: - at the end of day 5, i.e. t= 5? - at the end of day 24, i.e. t = 24? Question 2.2 (15%) If the stock of commodities is initially 650 (items) and the average commodity lifetime is 40 (days) how many good items will there be in the warehouse: - at the end of day 22, i.e. t = 22? at the end of day 43, i.e. t = 43? Question 2.3 (20%) Let the initial stock of commodities be 650 (items) and the average commodity lifetime 10 (days). If the value of each stored item is 8 euro then what is the rate with which the wholesaler loses money (due to items that go bad): - at the end of day 7, i.e. t = 7? - at the end of day 8, i.e. t = 8
