Feasibility Study of Investment in a Pallet Management Warehouse to Replace External Pallet Rental Home and Personal Care Industry

Abstract

This research article aimed to 1) study the technical models and alternatives for investing in the establishment of a pallet management warehouse and 2) study the financial feasibility of the project. This study employed descriptive and quantitative research approaches, using Company L Limited, a company within the Saha Group in Chonburi Province, as a case study. Ten key informants were purposively selected from personnel in five departments, namely sales, logistics, production planning, maintenance, and technical departments. Primary data were collected through participant observation, while secondary data were obtained from academic documents and the company's cost reports for the period B.E. 2564–2568 (2021–2025). Data were analyzed using descriptive statistics, regression analysis, financial feasibility assessment tools incorporating the time value of money, and switching value tests. The research findings revealed that 1) in terms of technical feasibility, the company incurred direct pallet rental costs of 15.72 million baht per year, increasing at an average rate of 9.11 percent annually, along with hidden costs of 529,305 baht per year. Pallet demand was forecast to increase to 125,463 pallets by B.E. 2583 (2040). The proposed model utilized 432 square meters of vacant space for the installation of an industrial tent structure divided into six zones, accommodating a circulation of 3,000 pallets per day, with a total investment of 63,093,900 baht; and 2) in terms of financial feasibility, under a 15-year project lifespan and a weighted average cost of capital (WACC) of 8.67 percent, the net present value (NPV) was 92,860,090 baht, the profitability index (PI) was 3.41 times, the internal rate of return (IRR) was 27.47 percent, and the modified internal rate of return (MIRR) was 16.15 percent. The switching value test results indicated that the project could withstand a 44.80 percent decrease in returns, a 152.92 percent increase in investment costs, and a 172.97 percent increase in operating costs before reaching the threshold of financial infeasibility. It was concluded that the project was technically feasible and financially viable under the specified assumptions.