1. Determine the best location if IR decides to use only one facility Be sure to report...

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1. Determine the best location if IR decides to use only one facility Be sure to report the net present value CNP4 using a 10-year horizon and the financial Straight Line Depreciation (SLD). Solver for this reaction, as well as the percentage of repairs that are within 30 minutes of the chosen location.
2. Determine the best location for the new site II IR decides 10 use two facilities (retaining the existing site for the first one). Be sure to report the NPV using a 10-year horizon and the financial Analysis-Straight Line Depreciation (SLD). Solver for this relocation and the percentage of repairs that within 30 minutes of the chosen locations.
3. What should Andrew recommend? Provide an explanation for supporting the recommendation.

For 25 years, industrial Repair (1R) operated its industrial machine repair business out of its n office ‘located at 26 Arbor Street. Hartford Connecticut initially, almost all of its customers were based in Hartford only. However, its good reputation for timely service allowed IR to grow, and as a result it currently serves customers throughout the state of Connecticut. When its customers’ heavy industrial machines break down, IR sends a crew of two technicians and a truck to the customer site as quickly as possible.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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Operations management processes and supply chain

ISBN: 978-0136065760

9th edition

Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra

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