Galaxy Co. distributes wireless routers to Internet service providers. Galaxy procures each router for $75 from its supplier and sells each router for $125. Monthly demand for the router is a normal random variable with a mean of 100 units and a standard deviation of 20 units. At the beginning of each month, Galaxy orders enough routers from its supplier to bring the inventory level up to 100 routers. If the monthly demand is less than 100, Galaxy pays $15 per router that remains in inventory at the end of the month. If the monthly demand exceeds 100, Galaxy sells only the 100 routers in stock. Galaxy assigns a shortage cost of $30 for each unit of demand that is unsatisfied to represent a loss-of-goodwill among its customers. Management would like to use a simulation model to analyze this situation.a. What is the average monthly profit resulting from its policy of stocking 100 routers at the beginning of each month? b. What percentage of total demand is satisfied?
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Ответ:
a. The Percentage excess reserve formula can be expressed as (excess reserve required)/(total reserve). We know the required amount is $100B less than $240B, or $140B, and that the total reserve is $1000B, thus we can do it like this
Percentage excess reserve= (140B)/(1000B) = 14%
b. We can use the same formula but using 240 instead of 140, So it would be:
Percent excess reserve = (240B)/(1000B) = 24%
c. If the existing excess reserves were eliminated the deposits would be locked in the financial institutions and not be able to be removed until additional deposits were made