If it costs $10 million to build a new facility and you expect to depreciate the building

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If it costs $10 million to build a new facility and you expect to depreciate the building over 20 years, why wouldn’t you include the full $10 million when you are building a model with a year’s worth of demand?

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Supply Chain Network Design Applying Optimization and Analytics to the Global Supply Chain

ISBN: 978-0133017373

1st edition

Authors: Michael Watson, Sara Lewis, Peter Cacioppi, Jay Jayaraman

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Question Posted: Oct 29, 2015 05:39 AM

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If it costs $10 million to build a new facility and you expect to depreciate the building

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Because you are modeling only 1 years worth of demand you will only have 1 years ...View the full answer

Supply Chain Network Design Applying Optimization and Analytics to the Global Supply Chain

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