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8.63 A retailer of computing products sells a variety of computer-related products. One of his most popular products is an HP laser printer. The average weekly demand is 200. Lead time for a new order from the manufacturer to arrive is 1 week. If the demand for printers were constant, the retailer would reorder when there were exactly 200 printers in inventory. However, the demand is a random variable.
An analysis of previous weeks reveals that the weekly demand standard deviation is 30. The retailer knows that if a customer wants to buy an HP laser printer but he has none available, he will lose that sale plus possibly additional sales. He wants the probability of running short in any week to be no more than 6%. How many HP laser printers should he have in stock when he reorders from the manufacturer?
Expand on Johns thought. How are the large losses related to fixed costs? Identify a way that John can turn potential fixed costs into variable costs.
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Prepare an incremental analysis for the 4 years showing whether Shellhammer should keep the existing machine or buy the new machine and calculate the annual rate of return for the new machine.
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On the surface there seems to be a tension between appeals to autonomy in defense of freedom of speech and expression and appeals to autonomy in order to justify restrictions on freedom of speech and expression which may result in sexual harassmen..
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