Companies is decentralized production most appropriate

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Reference no: EM132153124

1. Delicio cupcake restaurant stocks 360 cupcakes at the beginning of each day. On the average, the delicio sells dozens a hour (1/2 dozen at a time), but the actual demand follows a Poisson distribution. If the delicio open at 7 A.M and closed at 5 P.M, find:

a. The probability that all cupcakes are sold out at 3 P.M.

b. The probability that 120 cupcakes are sold out at 10 A.M

c. The probability that there are cupcakes in the stock at the end of the day.

2. In which of the following companies is decentralized production most appropriate?

a. company A which sells a product that serves universal needs, uses production technology with high fixed costs

b. company B which sells a product with high value-to-weight ratio, operates in an industry where location externalities are important.

c. company C which selles a unique prodduct, operates in an industry where location externalities are important.

d. Company D, which sells a product with low value-to-weight ratio, expects exchange rate to remain relatively stable.

e. Company E, which sells a product that does not serve universal needs operates in an industry where location externalities are not important.

Reference no: EM132153124

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