Course: Facilities Design

A fork$-$lift truck costs $$18,000$ and has a useful estimated life of $5$ years with no salvage. The

truck is used to move materials from the warehouse to the shipping department. The average

distance traveled is $80$ meters each way for a drop off and back. About $50,000$ moves are required

per year. The facility operates two $8-$hour shifts a day. The driver is paid an average of $$20$ per

hour. A truck is expected to be down $10\%$ of the time for scheduled and unscheduled

maintenance. The cost of insurance and maintaining the forklift has been estimated as being

around $$2,000$ per year. This cost is considered part of the variable cost by the company's

accountant and is allocated to each move. The truck speed is $40$ meters$/$minute and pickup and

drop$-$off time is about $1$ minutes each. Fuel costs are $$\frac{1\mathrm{.}2}{?}$ litre and the truck consumes $25$ liters

of fuel for every $100km.$

a$.$ What is the fixed cost of purchasing one truck over a yearly horizon? $(5)$

b$.$ How many trucks are required for this move $($leave your answer in decimals$)(5)$

c$.$ What is the variable cost per move? Assume that the variable cost is allocated to

the fractional number of trucks you calculated in your answer to b$.(5)$

Assume that there are $200$ working days per year. The discount rate for annualizing the fixed

cost is $5\%.$

Search online for examples of $3_{?}$ the following material handling equipment. Include a picture

$($don$\text{'}$t forget to cite the source$)$ and write a short sentence that describes the use of each. $(15)$

Palletizer

Wheel Conveyor

Power$-$and$-$Free Conveyor

Tilt$-$tray sorter

Jib Crane

Drive$-$in Pallet Rack

Straddle Stacker

Turret Truck

Carton Flow Rack

Unit Load AS$/$RS

Vertical Carousel

Radio Frequency Tag