Use the following for the next 2 questions: A company needs to build a warehouse for a new product line. The product is to be stored in cases that are 2 feet long x 2 feet wide x 3 feet high. The cases are stored on racks that are 5 cases high. Due to the configuration of the racks, only 60% of the space in the storage area is actually used for storage. The company wants to be able to expand the product line in the future so the storage area should be designed to be 70% utilized in the first year. 1. If annual demand is expected to be 50,000 cases in year 1 with an annual turnover of 4, how many square feet are needed to store this product? - 1,587 square feet - 121,593 square feet - 52,809 square feet - 4,762 square feet - 14,287 square feet - 71,429 square feet - 23,810 square feet 2. The product is expected to have seasonal demand with the peak month being 10,000 cases in October. If the annual turnover is 6, how many square feet are needed to store this product? - 114,286 square feet - 7,619 square feet - 73,693 square feet - 2,540 square feet - 3,175 square feet - 38,095 square feet - 87,256 square feet
Use the following for the next 2 questions: A company needs to build a warehouse for a new product line. The product is to be stored in cases that are 2 feet long x 2 feet wide x 3 feet high. The cases are stored on racks that are 5 cases high. Due to the configuration of the racks, only 60% of the space in the storage area is actually used for storage. The company wants to be able to expand the product line in the future so the storage area should be designed to be 70% utilized in the first year. 1. If annual demand is expected to be 50,000 cases in year 1 with an annual turnover of 4, how many square feet are needed to store this product? - 1,587 square feet - 121,593 square feet - 52,809 square feet - 4,762 square feet - 14,287 square feet - 71,429 square feet - 23,810 square feet 2. The product is expected to have seasonal demand with the peak month being 10,000 cases in October. If the annual turnover is 6, how many square feet are needed to store this product? - 114,286 square feet - 7,619 square feet - 73,693 square feet - 2,540 square feet - 3,175 square feet - 38,095 square feet - 87,256 square feet
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Use the following for the next 2 questions:
A company needs to build a warehouse for a new product line. The product is to be stored in cases that are 2 feet long x 2 feet wide x 3 feet high. The cases are stored on racks that are 5 cases high. Due to the configuration of the racks, only 60% of the space in the storage area is actually used for storage. The company wants to be able to expand the product line in the future so the storage area should be designed to be 70% utilized in the first year.
1. If annual demand is expected to be 50,000 cases in year 1 with an annual turnover of 4, how many square feet are needed to store this product?
- 1,587 square feet
- 121,593 square feet
- 52,809 square feet
- 4,762 square feet
- 14,287 square feet
- 71,429 square feet
- 23,810 square feet
2. The product is expected to have seasonal demand with the peak month being 10,000 cases in October. If the annual turnover is 6, how many square feet are needed to store this product?
- 114,286 square feet
- 7,619 square feet
- 73,693 square feet
- 2,540 square feet
- 3,175 square feet
- 38,095 square feet
- 87,256 square feet
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