16-5 Warehouse
Lease rate/sq ft, cB0.50$
Spot rate/sq ft, cS0.70$
Warehouse mean demand, µ500,000
Warehouse sd, σ150,000
p* (Equation 16.9) 0.29
Q* (Equation 16.10) 415,108
16-5 Warehouse
Lease rate/sq ft 0.50$
Spot rate/sq ft 0.70$
Warehouse mean 500,000
Warehouse sd 150,000
p* =(B4-B3)/B4
Q* =NORMINV(B8,B5,B6)