Caselet $5$ FY$2023-24$ was among one of the firm's best years; Tata Motors reported record$-$high sales. And with that success, capacity$-$expansion discussions followed with the top management. The key questions they had to answer were whether the current Maharashtra facility should be expanded or a new plant should be built in another location. And if it was decided to seek a location outside of Maharashtra, where exactly should the zcompany go$?$ Tata Motors was selling $40,000$ units of cars per year $($and had enough capacity in Maharashtra to produce it$).$ It was expected that the demand for Tata Motors' vehicles would reach $80,000$ per year. With manufacturing capabilities in Maharashtra, executives searched for another site option. At the time, the Maharashtra site held $\backslash (50\backslash \%\backslash )$ of the national market share supplying Tata Motors' vehicles. Table $1$ shows the geographical breakdown of sales in FY$2023.$ Table $1.$ Sales Data for FY$2023$ As discussions of CEO, Ms$.$ Sanchita with his team continued, so did conversations about what the optimal location would be$.$ "Our major customer base was moving to Uttar Pradesh," Sanchita said, $"$so we decided to look at Haryana, Uttarakhand, and Chennai as well as expanding capacity in Maharashtra." While conducting due diligence, a picture of the advantages and disadvantages of each geographic area began to appear. Table $2$ provides economic indicators for each geographical area. Table $3$ includes projected investment costs, capacities, shipping costs, and manufacturing efficiencies for each location discussed. Table $2.$ Economic indicators

Table $3.$ Comparison DataInvestment cost $($in millions of U$.$S$.$ dollars$)$Efficiencies $($units$/$ worker$/$ hour$)$Capacity $($in units$)$Shipping cost to North and East of IndiaShipping cost to south and west parts of India

Given that predicting future demand for Tata motors was infamously difficult and completing a new manufacturing plant would take one to two years, Sanchita knew the company had to decide whether to add capacity long before it would be needed. The issue at hand was exactly what the increased capacity would look like. Would it be an expansion of the already established facility in Bangalore? Perhaps a move to another location made more sense? As the clock ticked, Ramesh was eager to get the facility decision moving along. Based on the financial considerations, determine whether Tata motors should expand the current capacity in Bangalore or open elsewhere. Use the data presented in the case to calculate the three$-$year cost of each of the options as well as the amount of demand to be satisfied from each location $($North $\backslash$& East Vs$.$ South $\backslash$& West parts of India$).$