BREAKEVEN POINT ANALYSIS FOR INVESTMENT IN MACHINERY FOR DESIGN OF MATERIAL HANDLING SYSTEMS IN THE PRODUCTION LINE OF ANIMAL FEED A CASE STUDY OF BETAGRO COMPANY

Abstract

The objectives of this research was to study the possibilities of the investment in machines for material handling system design of animal feed products in Betagro Public Company which face with annual expense of expensive wage including comparatively heavy for workers to transport merchandise to 4 types of trucks such as 6 wheeled truck, 10 wheeled truck, trailer and semitrailer. The researchers examined and investigated the solutions by applying industrial engineering machineries and methods. It was found that 3 formats of material handling machines are eligible as follows: 1) Two Vacuum Pump, 2) Push and Pull and 3) Robotarm. In the study of the possibilities of the investment in machines indicated that 1) Two Vacuum Pump is the worthiest investment according to the analysis of Engineering Economics. In calculating annual cost and break-even point, it shows that the current sales is 87,878 pallet per year, which is suitable for format 1 machinery which its proper break-even point is between 72,516 to 806,760 pallet each year. The net present value will be 567,658.38 Baht which raises equivalent uniform annual worth up to 41,764.15 Baht and the wastage of spaces increase from 0.8 meters or 32% in total. When cogitating the annual worth which cost 44,171 Baht, it will decrease 90.82 percent of up-to-date stipend. Hence, 1) format of machinery is the most appropriate for both operation and investment.