ApEc 3002 Spring 2017 T. Hurley Lab 14: Long-Term Investment Analysis Due Date: Friday, April 28 ( by 12:00 p.m. in 248 Ruttan Hall ) Early in this course we analyzed several aspects of the operations of a hypothetical online grocery service operating in the Twin Cities. That firm is expanding its service into the suburbs to the east and north of St. Paul. They currently make 400 deliveries per week in these suburbs. Because delivery vans must drive across the metro area to make these deliveries, average delivery costs are high – $28 per order. The management team has been exploring the possibility of leasing a small vacant supermarket and converting it into a transshipment point for deliveries to customers in these eastern suburbs. If a transshipment point is established, orders will be shipped by semi from the warehouse to the transshipment point, where they will then be cross- docked into delivery vans. You have been asked to help analyze this decision.
- Spring '14