Feasibility Study and Finding a Suitable Location for Frozen Food Distribution Center Investment Project: A Case Study of XYZ Company Limited

Abstract

XYZ Company Limited is a leading company in importing and distribute frozen food Current company Rent private cold storage, which has a rising cost. And the space in the cold storage ro           om is insufficient, unable to respond to the demand of customers, resulting in loss of opportunity If the company does not adjust, may have to dissolve the business.

The company therefore has the idea to build its own distribution center. The study has analyzed the center of Gravity to reduce the cost of transportation. Then use the hierarchical analysis theory (AHP) to analyze the importance of various factors. Applied to the factors in choosing the location (Factor Rating Method) to study the factors that affect the location selection And decide on the suitable location Including studying the possibility of investing in a frozen food distribution center Compare operating costs between the original cold storage room And the new cold storage room To reduce the total cost of operations And analyze the worthiness of the investment to build a frozen food distribution center

From the calculation of the location using the Center of Gravity method, the result is a longitude equal to 100.6288545 while the latitude is 13.68813316. 3 points. The result is The mouth of the Soi Paladphri temple Bang Phli District (7.11) along the Bang-Trat parallel road, Bang Na (5.82) and Bangkok-Chon Buri New Sai Road, Prawet (5.62), then using hierarchical analysis techniques to compare factors and options. The result is The main factors are arranged in order of importance, namely Geography (0.5596), infrastructure (0.3768) and business operations (0.0636). The secondary factors are ranked in order of importance, namely Near the center (0.3257) Land price (0.1386) Utilities (0.1286) Near the source of raw materials (0.1032) Traffic (0.0732) Environment (0.0731) Economic growth of that area (0.0636) Near the raw material source (0.0575) and the population ( 0.0365) The option to compare the priorities is Along the Bangna-Trat parallel road, Bang Na Subdistrict (0.4311), at the mouth of Soi Palad Phriang Temple Bang Phli District (0.3313) and the mouth of Wat Palad Phriang Soi Bang Phli District (0.2376) makes it known that the location is suitable. Along the road to the Bangna-Trat parallel road, Bang Na, and the investment to build a new distribution center consisting of land price of an appropriate location 46,000,000 baht and cold storage warehouse construction 23,149,250 baht, total investment 69,149,250 baht, when analyzed for the return period capital. The result is a payback period of 1.25 years.