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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 its

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
?
$
1 0 . 0 0
? ? per square foot. The yearly cost of leasing public warehouse space is
?
$
1 6 . 0 0
? ? per square foot. Requirements
(
in sq
.
? ? ft
) 2 3 0
,
0 0 0 3 8 0
,
0 0 0 5 3 0
,
0 0 0 6 8 0
,
0 0 0
Probability
0 . 3 5 0 . 3 5 0 . 1 5 0 . 1 5
? ? a
.
? ? The expected value of leasing public warehouse space as required by demand is
?
$
6
,
3 2 0
,
0 0 0 6
,
3 2 0
,
0 0 0
.
? ? (
Enter your response as a whole
?
? ? number .
)
Part
3
b
.
? ? The expected value of building a
2 3 0
,
0 0 0 ?
-
square
-
foot distribution center and leasing public warehouse space as required if demand exceeds the need for
2 3 0
,
0 0 0
? square feet of space is
?
$
4
,
9 4 0
,
0 0 0 4
,
9 4 0
,
0 0 0
.
? ? (
Enter your response as a whole
?
? ? number .
)
Part
4
c
.
? ? The expected value of building a
3 8 0
,
0 0 0 ?
-
square
-
foot distribution center and leasing public warehouse space as required if demand exceeds the need for
3 8 0
,
0 0 0
? square feet of space is
?

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