Industrial Repair Values - Essay Example

It can either relocate the current facility to some other regions or it can operate two facilities at different locations. The sole objective is to enable the crew to reach customers within 30 minutes drive. The accountants reached the conclusion that if the company opens a facility it will cost $100,000; whereas if it operates two facilities it will cost an extra $70, 000 per year in operating expenses. The company assigned Andrew Morgan as the facility manager to examine if the company has to maintain two facilities.

Furthermore, he was asked to suggest a new location for the company if it has to be relocated. He has to consider both transportation costs and the percent of customers within the time zone of proposed facilities. He can use OM Explorer Solver which gives address and number of existing customers. With the help of OM Explorer Solver, he can calculate the time and distance for each customer to reach the nearest facilities.