Question
Use the following for the next 2 questions: A company needs to construct a 500,000 square foot warehouse facility to support its growing business. Annual
Use the following for the next 2 questions:
A company needs to construct a 500,000 square foot warehouse facility to support its growing business. Annual facility maintenance costs are $8 per linear foot of building. Product is received, stored and shipped on pallets. The company estimates that it costs $0.10/foot to transport the pallets to and from storage and that 20,000 pallets of product will be shipped from the facility each year.
1. If the dock is located in the corner of the facility, what is the optimal length and width of the facility?
- 504 x 992 feet
- 560 x 893 feet
- 620 x 806 feet
- 379 x 1,319 feet
- 460 x 1,087 feet
- 410 x 1,220 feet
- 789 x 634 feet
2. If the dock is located in the corner of the facility, what is the minimum total material handling and warehouse perimeter costs?
- $802,117
- $675,881
- $842,891
- $1,023,969
- $984,062
- $763,703
- $923,719
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