If it costs $10 million to build a new facility and you expect to depreciate the building over 20 years, why wouldn’t you include the full $10 million when you are building a model with a year’s worth of demand?
Answer to relevant QuestionsOpen the file Warehouse Costs by Throughput.xls located on the book web site. This file contains the total cost to operate different warehouses by throughput. Run a regression analysis and estimate the fixed and variable ...Open the file from Chapter 3, "Locating Facilities Using a Distance-Based Approach," called MIP for 9-City Example.xls. Assume that the baseline had St. Louis serving itself, Chicago, and Cincinnati, while Boston served all ...In the five-warehouse solution, even though the Columbus warehouse is very close to the plants, it still chooses to serve customers from additional warehouses. Why? In other words, why not save on inbound transportation and ...Describe how you would model the associated products in each situation: a. A German chemical company produces five different liquid chemical products (Liquid Products A through E for this example). These liquid products are ...You are creating a model for a manufacturing company with four major plants and ten warehouses. They want to reduce costs by determining the optimal number and location of the plants and warehouses. During the initial set of ...
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