Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its

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Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its products are enjoying a growing reputation and increased demand through-out the American Southwest. Because of the high cost of transporting soft drinks, it is considering a new plant to serve the states of New Mexico and Arizona. A key concern in its search for a new location is the resultant transportation costs to serve its key markets. Following is a list of cities where its main wholesale customers are located, along with estimated annual demand in cases of product for each.


Santa Cruz Bottling is a manufacturer of organic soft drinks


a. Use the centroid method to recommend a location for the new bottling plant. Round your coordinates to one decimal place.
b. Do you have any concerns about the result? How would you deal withthem?

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Operations and Supply Chain Management

ISBN: 978-0078024023

14th edition

Authors: F. Robert Jacobs, Richard Chase

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