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Acadia Logistics anticipates that it will need more distribution center space to accommodate what it believes will be a significant increase in demand for
Acadia Logistics anticipates that it will need more distribution center space to accommodate what it believes will be a significant increase in demand for its final-mile services. Acadia could either lease public warehouse space to cover all levels of demand or construct its own distribution center to meet a specified level of demand, and then use public warehousing to cover the rest. The yearly cost of building and operating its own facility, including the amortized cost of construction, is $13.50 per square foot. The yearly cost of leasing public warehouse space is $21.00 per square foot. Click the icon to view the expected demand requirements. a. The expected value of leasing public warehouse space as required by demand is 10920000. (Enter your response as a whole number.) b. The expected value of building a 300,000-square-foot distribution center and leasing public warehouse space as required if demand exceeds the need for 300,000 square feet of space is $ 8670000. (Enter your response as a whole number.) c. The expected value of building a 500,000-square-foot distribution center and leasing public warehouse space as required if demand exceeds the need for 500,000 square feet of space is $ (Enter your response as a whole number.) More info Requirements (in sq. ft) Probability 300,000 0.4 500,000 0.25 700,000 0.2 900,000 0.15 Print Done
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