Question: Can you show work and all steps Problem 3 . ( Chapter 1 2 : Storage and Handling Decisions, hint: similar to the sizing problem
Can you show work and all steps
Problem Chapter : Storage and Handling Decisions, hint: similar to the sizing problem example in class, see Module Ch Part on Canvas The Acme Manufacturing Company is concerned about its warehouse needs and how they can be best met. The company produces a line of spare parts for appliances. Due to the combination of production policies and demand patterns, warehousing space requirements vary considerably throughout the year. Space requirements are kniown with a great deal of certainty because the product line satisfies a replacement market. Growth, or decline, in production and sales is not anticipated in the near future. Warehouse inventory turns at the rate of two times per month. A dollar's worth of merchandise occupies cubic feet of warehouse space and can be stacked high. The product density is $ per lb Given aisles, administrative space, and normal operating efficiency, only percent of the total warehouse space is actually used for storage.
A private warehouse can be constructed and equipped for $ per sq ft and can be amortized over years. The cost of operation is $ per of throughput. Annual fixed costs amount to $ per sq ft of total space. Space may also be rented for a storage charge on inventory of $ per per month and a handling charge of $ per of throughput. Monthly sales rates for a typical year are as follows:
tableMonthSales $Jan
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