1. 2016- DO NOTHING
2017- DO NOTHING

2. OnlyAddWarehouseswith2016 Demand

3. OnlyAddWarehouseswith2016 DemandFIXED

4. OnlyAddWarehouseswith2017 Demand

5. OnlyAddWarehouseswith2017 DemandFIXED

6. OnlyAddWarehouseswith2018 Demand

7. OnlyAddWarehouseswith2018 DemandFIXED

8. AddWarehousesANDCapacityinIowawith2016 Demand

9. AddWarehousesANDCapacityinIowawith2017 Demand

10. AddWarehousesANDCapacityinIowawith2018 Demand

11. AddWarehousesANDCapacityinIowawith2019 Demand

12. AddJuarezPlantand Warehouseswith 2017 Demand(2-4)

13. AddJuarezPlantand Warehouseswith2018 Demand(4-6)

14. AddJuarezPlantand Warehouseswith2019 Demand(4-6)

15. Max WarehouseswithoutJuarez2016

16. Max WarehouseswithoutJuarez2017

17. Max WarehouseswithJuarez2016

18. Max WarehouseswithJuarez2017

19. FixedWarehouse sizesJuarez2016
Phoenix- 500,000
Sacramento- 450,000
Add5,000,000 for plantcost
Total cost:66,175,235.16

20. FixedWarehouse sizes Juarez2017
Total cost:66,723,175.61

21. FixedWarehouse sizesJuarez2018
Total Cost:$67,925,148.10

22. FixedWarehouse sizesJuarez2019
Total Cost:$71,010,653.45
FixedWarehousesJuarez
Phoenix- 500,000
Sacramento- 450,000
Orlando- 250,000
Houston- 250,000
Year 1: $66,175,235.16+ $5,000,000= $71,175,235.16
Year 2: $66,723,175.61
Year 3: $67,925,148.10
Year 4: 71,010,653.45
InterestRate:10%
NPV:$219,382,280.05

23. FixedWarehouse sizesIowa2016
Phoenix:450,000
Reno:450,000
Houston:250,000
Orlando:250,000
Total Cost:$65,304,205.57
Add$1,000,000

24. FixedWarehouse sizesIowa2017
Total Cost:$ 67,938,788.53

25. FixedWarehouse sizesIowa2018
Total Cost:$69,547,035.52

26. FixedWarehouse sizesIowa2019
Total Cost:$72,838,985.66
IowaFixedWarehouse sizes
Phoenix:450,000
Reno:450,000
Houston:250,000
Orlando:250,000
Year 1: $1,000,000+ $65,304,205.57= 66,304,205.57
Year 2: $ 67,938,788.53
Year 3: $ 69,547,035.52
Year 4: $ 72,838,985.66
InterestRate:10%
NPV:$218,426,033.39

27. Max WarehousesusingIowaData2016

28. Max WarehousesusingIowaData2017

29. IowaTransportationcostDecrease by20% in 2019

30. IowaTransportationcostIncrease by 20% in 2019

31. IowaTransportationcostIncrease by 40% in 2019

32. QUESTION 4
ShipfromDes MoinestoDover
How muchare theyspendingontransportation?
Possiblyconsiderexpandingcapacityof Dover?