Business, 04.12.2019 06:31 daustin57

Our demand for january is 20,000 units. each unit requires 0.5 square feet to store and we receive 2 deliveries per month. to design a new warehouse, we will take out a loan and pay $10 per square foot per month for 20 years. after careful planning designs, we have determined that only half our space will be used for storage of actual product (and the other half will be used for aisles, bathrooms, and loading docks). in addition, our warehouse costs $2 per square foot per month to operate. each unit we process in our warehouse costs $1 to ship out. alternatively, we are considering renting some space. at a cost of $14 per unit per month, an outside contractor is willing to store our product. in addition, they will charge us $2 per unit for shipping. determine the total cost for january if we design a 15,000 sq ft facility.

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Our demand for january is 20,000 units. each unit requires 0.5 square feet to store and we receive 2...

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