Question: Don Levine Corporation is considering adding an additional plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St.

Don Levine Corporation is considering adding an additional plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered.

Evaluating only the transportation costs per unit, as shown in the tables below, which site is better? FROM EXISTING PLANTS DECATUR MINNEAPOLIS CARBONDALE DEMAND Blue Earth $20 $17 $21

FROM EXISTING PLANTS DECATUR MINNEAPOLIS CARBONDALE DEMAND Blue Earth $20 $17 $21 250 Ciro 25 27 20 200 Des Moines 22 25 22 350 Capacity 300 200 150 FROM PROPOSED PLANTS EAST ST. LOUIS ST. LOUIS Blue Earth $29 $27 Ciro $30 $28 Des Moines $30 $31 Capacity 150 150

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