Question: Neptune Enterprises manufactures central processing units (CPUs) for a line of personal computers. Currently, the CPUs are manufactured in three existing plants in Raleigh, Akron,

Neptune Enterprises manufactures central processing units (CPUs) for a line of personal computers. Currently, the CPUs are manufactured in three existing plants in Raleigh, Akron, and Cedar Rapids. The company is considering adding a fourth plant in one of two locations: Mobile or Atlanta. Relevant data on shipping costs, capacities, and demand requirements for both the existing plants and destinations, and the proposed plants and destinations are given in the following tables. In which location should the fourth plant be added?

Destinations Existing Plants Capacity 350 Miami Houston Seattle $22 Raleigh Akron $23 $19 $27 250 $29 $27 $22 $24 Cedar

Destinations Proposed Plants Miami Houston Capacity Seattle $31 $31 200 $30 Mobile Atlanta $28 $30 $32 200

Destinations Existing Plants Capacity 350 Miami Houston Seattle $22 Raleigh Akron $23 $19 $27 250 $29 $27 $22 $24 Cedar Rapids 200 $24 310 Damand 290 400 Destinations Proposed Plants Miami Houston Capacity Seattle $31 $31 200 $30 Mobile Atlanta $28 $30 $32 200

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