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The Wayne Hills Hospital in tiny Wayne, Nebraska, faces a problem common to large, urban hospitals as well as small, remote ones like itself. The problem is deciding how much of each type of whole blood to keep in stock. Because blood is expensive and has a limited shelf life (up to 5 weeks under 1-6 degrees Centigrade refrigeration), Wayne Hills naturally wants to keep its stock as low as possible.
Unfortunately, past disasters such as a major tornado and a train wreck demonstrated that lives would be lost when not enough blood was available to handle massive needs. The hospital administrator wants to set an 85% service level based on demand over the past decade.
This is a balancing act between legal and ethical responsibilities, plus inventory quantities, inventory costs, holding costs, and inventory obsolescence.
To extend its international presence, Martinetti International has formed an expansion strategy focused on acquiring other like enterprises outside the European region. Martinetti, a subsidiary of a publicly owned parent company, is based in Rome ..
Suppose you win the lottery in 2010 when the jackpot amount is $162 million. You can receive the jackpot amount paid out evenly over 26 years or you can elect to take an immediate payment of $95 million, before taxes. Ignore all tax effects. Assum..
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