The owner of a workplace talked with similar workplace owners that had to close the workplace until
Question:
The owner of a workplace talked with similar workplace owners that had to close the workplace until June because of Corona virus. She collected the data and analyzed the closure times of the workplaces.
✓ She estimated that the closure times were exponentially distributed with the average closure time 40 days.
✓ She evaluated that still there is a probability to close workplaces in coming winter because of Corona virus. ✓ Her total monthly workplace expenses are 10.000 TL.
✓ He determined the uncertainty about the coming period by talking to the experts that the workplace could be closed in less than 1 month, between 1 and 2 months and between 2 and 3 months.
✓ Within the scope of the search for alternative financial resources in this period, her bank has offered 3 alternatives with a 3-month grace-free (no payment for the first three month) annual 15,000 TL, a 3-month grace-free 40,000 TL with a 2 % interest rate/month and a 3-month grace-free annual 60,000 TL with 3 % interest rate/month.
✓ Draw your decision tree with the future value of money and suggest about the decision of the business owner.
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra