A toy manufacturer wants to open a third warehouse that will supply three retail outlets. The new
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A toy manufacturer wants to open a third warehouse that will supply three retail outlets. The new warehouse will supply 500 units of backyard playsets per week. Two locations are being studied, N1 and N2. Transportation costs for location N1 to stores A, B, and C are $6, $8, and $7 per unit, respectively; for location N2, the costs are $10, $6, and $4, respectively. The existing system is shown in the following table. Which location would result in the lower transportation costs for the system?
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