Question: Paramount Manufacturing is investigating which location would best position its new plant relative to two suppliers (located in cities A and B) and one market

Paramount Manufacturing is investigating which location would best position its new plant relative to two suppliers (located in cities A and B) and one market area (represented by city C). Management limited the search for this plant to those three locations and compiled the following information:


Paramount Manufacturing is investigating which location would be


a. Which of the three locations gives the lowest total cost, based on Euclidean distances?
b. Which location is best, based on rectilinear distances?
c. What are the coordinates of the center ofgravity?

Coordinates Tons per Freight Rate Location miles) Year (S/ton-mile) (100,200) 4,000 (400, 100)3,000 (100, 100)4,000 $3.00 $1.00 $3.00

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