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A few years ago, Amazon has introduced Amazon Hub Locker system for more convenient and secure deliveries to customers. In certain public stores such as Whole Foods in this problem, they installed lockers for their Prime deliveries. When customers request to have their Prime orders delivered to Hub Locker, then the products are delivered to a Whole Foods store. When there are available lockers, then the orders will directly be stored in lockers and customers are notified with secure codes, so that they can find their deliveries while they are shopping. When there are no available lockers, then the products will be kept in some space at the store. As soon as there is an available locker, they will be moved to one of the lockers.

Consider a Whole Foods store where 50 lockers are installed, and suppose that the Hub Locker requests (i.e., orders to be delivered in Hub Locker) arrive with a Poisson process with a rate ? = 120 per day. Suppose that when a customer is notified that their orders are stored in Hub Locker, then the time it takes to pick up their orders is exponentially distributed with mean 8 hours.

1. Explain that the Hub Locker system can be modeled as an M/M/s queue. What is the “server,” and how are service times modeled? Specify the parameters ?, µ, and s that can be used for analyzing this system via Q.xls.

2. What is the average delay, defined as the average time between when a product is arrived to the Whole Foods store and when it is moved to one of the lockers?

3. What is the average number of orders that are arrived to the store but not stored in the lockers?

4. What is the probability that an order will not experience the delay, i.e., it will directly be stored to one of the lockers?

5. Suppose that the service becomes more popular and the rate ? is increased to 135 per day. If you would like to meet a service requirement that the proportion of orders which experience the delay is less than 10%, how many additional lockers are needed?

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Rousseau Company uses the periodic LIFO inventory estimation method. At the beginning of the current fiscal year, the company’s inventory consisted of the following:

These units were produced over several years, during which inventory costs had increased rapidly. During the current year, Rousseau produced 20,000 additional units of inventory at an average cost of 36 per unit. The average sales price of units sold during the year was 55.

Required Answer the following questions. A. What would be Rousseau’s gross profit and average gross profit per unit if it sold 20,000, 24,000, 28,000, or 36,000 units during the year?

B. Assume that Rousseau sold 36,000 units during the year. How many units would it need to produce to minimize the tax effect of its gross profit? How many units would it need to produce to maximize its gross profit?

C. If you were a manager of Rousseau and you wanted to control the amount of gross profit reported by the company, what could you do? If you wanted to develop an accounting standard that could prevent this type of management manipulation of income, what kind of standard might you propose?

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Case: The Distracted Employee Instructions:

1. Read this case and think about:
– Who are the stakeholders?
– What realistic actions might you take?
– How would each of these actions affect each stakeholder’s interests?

2. Go to the discussion board and post an answer (200-300 words) to the question posted there. Discussion Board Question: Briefly describe one possible solution and its possible effects on any two stakeholders. The case: You are a partner in a mid-sized firm of public accountants. A junior accountant has just returned to work after taking special leave to care for her sick child. For financial reasons she needs to work full-time. She has been having difficulties with her child’s daycare, causing her to miss a number of team meetings (which usually take place at the beginning of each day) and to leave work early. She is very competent in her work but her absences are putting pressure on her and her overworked colleagues. You are her manager, and you are aware that the flow of work through the practice is coming under pressure. One of her male colleagues is beginning to make comments such as “a woman’s place is in the home”, and is undermining her at every opportunity, putting her under even greater stress. What are your options? What are the practical and ethical aspects of each option? What would you do? Adapted from “Ethical Dilemmas: Case Studies,” Consultative Committee of Accountancy Bodies (UK), 2011.

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Location, location, location can be the most important aspect to a business. Why? Where can your customers go to find you and your business? On the web? On a social media site? In a brick and mortar location? Where would you seek to be found with your ficticious business? Why do most entrepreneurs start out of their home? Amazon, HP, Dell, Uber began in the garage or in a dorm room. What are the benefits? Negatives? Can you do that with your business? Recognizing that many entrepreneurs are between 30-40 years old and employed full time, how do you go about creating your own business when you are employed and caring for a spouse or children? Can your home be a major distraction for you?

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