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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
$
? per square foot. The yearly cost of leasing public warehouse space is
$
? per square foot. Requirements
in sq
? ft
Probability
? a
? The expected value of leasing public warehouse space as required by demand is
$
?
Enter your response as a whole
? number
Part
b
? The expected value of building a
square
foot distribution center and leasing public warehouse space as required if demand exceeds the need for
square feet of space is
$
?
Enter your response as a whole
? number
Part
c
? The expected value of building a
square
foot distribution center and leasing public warehouse space as required if demand exceeds the need for
square feet of space is
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