Consider the warehouse location decision facing CupAMoe’s (Example 8.6).
a. Suppose Robbie has learned that Capital City’s population is expected to grow by just 5% over the next five years, while Springfield’s population is expected to increase by 50,000 over the same time period. Recalculate the X and Y coordinates using this new information.
b. Now suppose Robbie has also learned that Capital City generates $800,000 in sales per year, while Spring field and Shelbyville both generate only $150,000 in sales each. Using sales dollars as the weights, recalculate the X and Y coordinates.
c. Which do you think is a better weighting factor to consider: population or sales dollars? Explain.