A FEASIBILITY STUDY OF ESTABLISHING A NEW WAREHOUSE : CASE STUDY OF THE BANGKOK BRANCH OF ABC COMPANY

Pongtep  Phudetch; Anchalee  Hiranphaet

Pongtep Phudetch College of Logistics and Supply Chain, Suan Sunandha Rajabhat University, Bangkok
Anchalee Hiranphaet College of Logistics and Supply Chain, Suan Sunandha Rajabhat University, Bangkok

Keywords: MRO Warehouse, Center of gravity, Supply Chain

Abstract

Abstract— The objectives of this research were to study possibility of establishing a Maintenance Repair and Operations (MRO) Warehouse new warehouse of the ABC Company. For information and guidelines to be used in the decision to establish a new warehouse. The Center of gravity technique was used analyzefordetermine new location ofwarehouse in the center of distribution for the most economy of cost transport. The result ofstudy found thata new location of warehouse is Bang Khun Thian Road-Chai Talay, Samae Dam Subdistrict, Bang Khun Thian Districst, Bangkok (Latitude13.64869 Longitude100.43188). And then we made model in 2 cases for compared between lead timestransport of oldwarehouse and lead times transport of a new warehouse which study in second case can reduce lead times transport to average 30 minutes and reduce fuel cost to average 200 baht per day or 5,200 baht per month. For analysis of finance by concepts of the criteria in the decision to invest the payback period (Payback Period: PB), NPV (Net Present Value: NPV) and internal rate of return real (Internal Rate of Return: IRR) found that there was no possibility of invest. This project has a payback period of 23 years and 346 days is equal to the present value -41,550,000 baht and internal rate of return realequal to2 percentage.