Question: A small manufacturing facility is being planned that will feed parts to three (3) heavy manufacturing facilities. The location of their current plants with their

A small manufacturing facility is being planned that will feed parts to three (3) heavy manufacturing facilities. The location of their current plants with their coordinates and volume requirements are given in the table below

Plant location Coordinates ( XY) Volume ( Parts per year )

London 300, 320 4,000

Trinidad 375, 470 6,000

Guyana 470, 180 3,000

  1. under the centroid Method, the best location of the warehouse is 374, 357

Is it more cost-efficient to ship directly between London and Guyana than to ship via warehouse near the Centroid? if so, Why?

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