Question: Trips Logistics, a third - party logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to
Trips Logistics, a thirdparty logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to lease for the upcoming threeyear period. square feet of warehouse space is required for every units of demand, and the current demand at Trips Logistics is for units per year. The manager forecasts that from one year to the next, demand may go up percent with a probability of or go down by percent by a probability of The probabilities of the two outcomes are independent.
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