Providing service to an intermediate market

Reference no: EM1390752

Logistics provides services to three types of markets: Low, Intermediate and High. Each category refers to a construct of several key variables that makes the market competitively desirable. During a given year, there is a 0.25 probability that a Low market will change to an Intermediate market and a 0.05 probability that Logistics will stop providing service to the market (is no longer competitive to develop the market.) Also, there is a 0.15 probability that an Intermediate market evolve to a High market and a 0.10 probability that Logistics will stop providing service to this market. There is a 0.05 probability that Logistics will stop providing service to a High market. For the time-frame of this study, once a market has reached a higher category, it won't fall back to a lower category. What is the probability that Logistics will stop providing service to an Intermediate market before becoming a High market?

Reference no: EM1390752

Questions Cloud

Problems in a galvanizing process : The time between surface nish problems in a galvanizing process is exponentially distributed with a mean of 40 hours. A single plant operates three galvanizing lines that are assumed to operate independently.

Find out the single most important element : find out the single most important element which a Director of Finance must practice diligently. Provide a rationale for your answer.

Illustrate what did this organization or industry : Illustrate what did this organization or industry, do which demonstrated their commitment or lack of commitment to CSR? Illustrate what was the outcome

What was your role in strategy for that organization : Have you ever held a position that had direct responsibility for strategy formulation or execution? What was your role in strategy for that organization?

Providing service to an intermediate market : For the time-frame of this study, once a market has reached a higher category, it won't fall back to a lower category. What is the probability that Logistics will stop providing service to an Intermediate market before becoming a High market?

Compute the annual total cost : Compute the annual total cost (i.e. the Purchase cost + Ordering cost + Holding cost). (Please read the question more than once)

Average forecast of demand : Compute a 3 month moving average forecast of demand for April through January (of the next year). Compute a 5 month moving average forecast for June through January

Specify as a whole number by rounding : Specify as a whole number by rounding. Do not round the EOQ that you obtain in the process of determining the number of orders.

The central valve company sells industrial valves and fluid : The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves, the Western, has an annual demand of 6,000 units

User Account

All Pages