Compute the following: 1. Warehousing firm Case: Firm has a warehouse in Gurgaon and a firm rents out capacity for a month as a unit of time. It has physical warehousing space for storing 50000 MT of...

Use excel to compute Ps: the formula is given in the picture below

Extracted text: Compute the following: 1. Warehousing firm Case: Firm has a warehouse in Gurgaon and a firm rents out capacity for a month as a unit of time. It has physical warehousing space for storing 50000 MT of goods and is trying to decide on how much capacity to reserve for spot market customers for a coming December month. Forward market: Unlimited demand, market prices are Rs. 150 per MT, spot markets prices are 200 per MT. Demand for warehousing capacity in spot market in December follows normal distribution with mean demand being 10000 MT with standard deviation of demand being 3000 MT. Compute the optimum reserve capacity for spot market.


Extracted text: Capacity Allocation Among Multiple Segments: Forward-versus-spot Market Forward price is Prand spot price is P, • Cost of understocking = P, - Pf Cost of overstocking = P; • Optimal Service Level = (Cy x 100) / (Cu + C) = (P, - P; )*100/( P, - P;+ P;) = (P, - P;) *100/ P, Optimum protection level for the spot market segment = Mean demand for the spot market segment+ k x Standard deviation of the demand for spot market segment Where k = service factor for optimal service level %3D %3D %3D