A manufacturer has acquired four small assembly plants, located in Charlotte, Tulsa, Memphis, and Buffalo. The plan is to remodel and keep two of the plants and close the other two. The table at the top of the next page provides the anticipated monthly capacities and the monthly fixed costs for operating plants at each potential site. It is estimated that the costs to remodel and/or close the plants are equivalent.
Because of union considerations, if the plant in Buffalo is kept open, the plant in Tulsa must also be kept open. If the objective is to minimize total fixed and shipping costs, which two sites should be selected to continue assembly?

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CHARLOTTE TULSA MEMPHIS BUFFALO 7,250 $35,000 $34,000 7,500 $32,000 Monthly capacity (units) Monthly fixed cost (S) Shipping to Region 1 ($/unit) Shipping to Region 2 ($/unit) Shipping to Region 3 (S/unit) 7,000 $30,000 6,500 $ 3 4 $ 10 REGION 1 REGION 2 REGION 3 Monthly demand (units) 3,000 4,000 6,500