Utilizing An ASRS System Essay example

763 Words4 Pages
Executive Summary CanGo is a small-sized company that retails a variety of products and services, ranging from books and videos to online gaming services. CanGo has had problems in the past with market strategies and formal planning. Liz, the founder of CanGo, and management would like to expand into the online gaming market. Our company, Quality Management Solutions, is writing a business plan on how to assist them the planning process of implementing a storage and retrieval system for online gaming. We will go over the features and benefits of the companies that we have researched and give them the recommendations on which one we believe will best fit their needs. We will also be assisting them on how to implement this system to get…show more content…
The capacity of this new system has informed us to review the size of the ASRS and the location. In addition to discussing and making decisions on the size of the ASRS, we were given the opportunity to view areas of the installation, maintenance, and the start-up cost of the ASRS. Although, the start-up costs may seem inflated when compared to the current system in use, but the benefit of such a system as the new ASRS brings forth a better return in this investment for CanGo and will give them a competitive advantage in the market of online gaming. In our comparison of data from the three vendors that manufacturer quality products, the consultants have reached a consensus and we will be forming a business relationship with Mega Stars Systems. Of course, our main specifications of this ASRS system, such as start-up cost, maintenance, space, capacity were granted and the vendor was able to ascertain all our needs on this project. Here are the comparisons of the vendors that we chose to research: Comparison of Alternatives Description HK Systems Hanel Mega Stars Systems
Initial Investment $1,917,790.00 $2,212,319.00 $1,768,100.00
Operational Costs per year $83,953.00 $103,230.00 $90,879.00
Breakeven Point (years) 3.38 4.40 3.15
Total NPV $5,788,944.72 $1,995,494.68 $6,981,110.76
Internal Rate of Return on 10th year 26.84% 21.14% 29.27%
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