Manufacturing Facility Development in New York

There is one major reason why the Industrial & Specialty Chemicals divisions state they agree with the development of the New York City facility. Market share in that region will decline 5% per year for the next five years if a new facility is not developed. If a new facility is developed for that market, then market share will increase 10-15% per year for the next three years and 5-8% for the remaining two years. I will need to collect data in order to make a sound decision. The type of data needed will be discussed in the following paragraphs.

Transportation:

Rail, tank truck, barge, and ship are the four options Canbide has for transportation. Companies use rail to transport high-density products over long distances. Since Canbide produces chemicals this option would be less costly. Some data that needs to be collected includes how many cars each rail carries, how long it takes our chemicals to reach their destination, how many cars will be needed to carry our products? Trains are not scheduled so they leave when all of the cars are full. Therefore, chemicals that are time sensitive should not be transported by rail. Tank trucks can be used for time sensitive products. Tank trucks are more expensive so we will use these on short trips. Barge and ship are costly and time consuming. If we have products that are not time sensitive, then these additional methods can be used.

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