Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 12, Problem 21P
(a):
To determine
Calculate the expected return.
(b):
To determine
Calculate the variance.
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Your company has a new project to be considered. You are given the following information on the
best guess of related outcomes for the project. The cost of developing and market testing the
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cash flows after tax for a successful project are $225 million each year for the next six years with a
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the item it produces. The standard deviation in weekly demand is 20 units. The lead-time for the item is six
weeks, and it costs the company $30 to process each order. The holding cost for each unit is $10 per year.
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599 OR you can use excel functions)
What is the reorder point level if the company has a policy of maintaining a 90% cycle-service level?
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Chapter 12 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11P
Ch. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 28P
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