A personal computer manufacturer plans to locate its assembly plant in Taiwan and to ship its laptop computers back to North America through either Vancouver or San Francisco. It has distribution centres in Atlanta, Calgary, and New York and will ship to them from whichever city is chosen as the port of entry on the west coast. Overall transportation cost is the only criterion for choosing the port. Use the weighted-distance model and the information in Table 10.6 to select the most cost-effective city.

Transcribed Image Text:

Distances and Costs for Laptop Manufacturer TABLE 10.6 DISTRIBUTION CENTRE (laptops/year) ATLANTA CALGARY NEW YORK (12 500) Vancouver Distance (km) 450000 4850 Shippng cost (S/laptop/km) 00014 00014 0,004 San Francisco E3 E3 4000 2100 4700 Shipping cost (S/laptop/km) 0.0012 0.0012 0.0012