Solutions to MentalWorks

2016- DO NOTHING

2017- DO NOTHING

Only Add Warehouses with 2016 Demand

Only Add Warehouses with 2016 Demand FIXED

Only Add Warehouses with 2017 Demand

Only Add Warehouses with 2017 Demand FIXED

Only Add Warehouses with 2018 Demand

Only Add Warehouses with 2018 Demand FIXED

Add Warehouses AND Capacity in Iowa with 2016 Demand

Add Warehouses AND Capacity in Iowa with 2017 Demand

Add Warehouses AND Capacity in Iowa with 2018 Demand

Add Warehouses AND Capacity in Iowa with 2019 Demand

Add Juarez Plant and Warehouses with 2017 Demand (2-4)

Add Juarez Plant and Warehouses with 2018 Demand (4-6)

Add Juarez Plant and Warehouses with 2019 Demand (4-6)

Max Warehouses without Juarez 2016

Max Warehouses without Juarez 2017

Max Warehouses with Juarez 2016

Max Warehouses with Juarez 2017

Fixed Warehouse sizes Juarez 2016

Phoenix- 500,000

Sacramento- 450,000

Add 5,000,000 for plant cost

Total cost: 66,175,235.16

Fixed Warehouse sizes Juarez 2017

Total cost: 66,723,175.61

Fixed Warehouse sizes Juarez 2018

Total Cost: $67,925,148.10

Fixed Warehouse sizes Juarez 2019

Total Cost: $71,010,653.45

Fixed Warehouses Juarez

Phoenix- 500,000

Sacramento- 450,000

Orlando- 250,000

Houston- 250,000

Year 1: $66,175,235.16+ $5,000,000= $71,175,235.16

Year 2: $66,723,175.61

Year 3: $67,925,148.10

Year 4: 71,010,653.45

Interest Rate: 10%

NPV: $219,382,280.05

Fixed Warehouse sizes Iowa 2016

Phoenix: 450,000

Reno: 450,000

Houston: 250,000

Orlando: 250,000

Total Cost: $65,304,205.57

Add $1,000,000

Fixed Warehouse sizes Iowa 2017

Total Cost: $ 67,938,788.53

Fixed Warehouse sizes Iowa 2018

Total Cost: $69,547,035.52

Fixed Warehouse sizes Iowa 2019

Total Cost: $72,838,985.66

Iowa Fixed Warehouse sizes

Phoenix: 450,000

Reno: 450,000

Houston: 250,000

Orlando: 250,000

Year 1: $1,000,000+ $65,304,205.57= 66,304,205.57

Year 2: $ 67,938,788.53

Year 3: $ 69,547,035.52

Year 4: $ 72,838,985.66

Interest Rate: 10%

NPV: $218,426,033.39

Max Warehouses using Iowa Data 2016

Max Warehouses using Iowa Data 2017

Iowa Transportation cost Decrease by 20% in 2019

Iowa Transportation cost Increase by 20% in 2019

Iowa Transportation cost Increase by 40% in 2019

QUESTION 4

Ship from Des Moines to Dover

How much are they spending on transportation?

Possibly consider expanding capacity of Dover?