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Industrial Repair - Case Study Example

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Summary
(IR) is a successful company that has been running industrial machine repair business for the last 25 years. Although IR started its work in Hartford, its reputation for timely service helped the company to gain customers throughout the state of…
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Industrial Repair

Download file to see previous pages... The company management realizes that it is getting difficult for them to attract customers unless the company relocates its facility to ensure easy access to customers. 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 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 ...Download file to see next pagesRead More
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