Question: Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St.
Dana Johnson Corp. is considering adding a fourth 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 table, decide which site is best.
| From Existing Plants | |||||||
| To | Decatur | Minneapolis | Carbondale | Demand | |||
| Blue Earth | $20 | $17 | $21 | 500 | |||
| Ciro | $25 | $27 | $20 | 300 | |||
| Des Moines | $22 | $25 | $22 | 550 | |||
| Capacity | 500 | 400 | 250 | ||||
| From Proposed Plants | ||||
| To | East St. Louis | St. Louis | ||
| Blue Earth | $29 | $27 | ||
| Ciro | $30 | $28 | ||
| Des Moines | $30 | $31 | ||
| Capacity | 200 | 200 | ||
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| From | |||||||||
| To | Decatur | Minneapolis | Carbondale | East St. Louis | Demand | ||||
| Blue Earth | $20 | $17 | $21 | $29 | 500 | ||||
| 100 | 400 | ||||||||
| Ciro | $25 | $27 | $20 | $30 | 300 | ||||
| 250 | 50 |
| Des Moines | $22 | $25 | $22 | $30 | 550 | ||||
| 400 | 150 |
| Capacity | 500 | 400 | 250 | 200 |
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| From | |||||||||
| To | Decatur | Minneapolis | Carbondale | St. Louis | Demand | ||||
| Blue Earth | $20 | $17 | $21 | $27 | 500 | ||||
| 400 | 100 | ||||||||
| Ciro | $25 | $27 | $20 | $28 | 300 | ||||
| 200 | 100 |
| Des Moines | $22 | $25 | $22 | $31 | 550 | ||||
| 500 | 50 |
| Capacity | 500 | 400 | 250 | 200 |
Using the optimal solutions provided above, Dana Johnson Corp. should select
St. Louis
East St. Louis
, with a total cost of
$enter your response here
(enter your response as a whole number).
Using the optimal solutions provided above, calculate the total shipping costs with a new plant in St. Louis.
Dana Johnson Corp. should select
St. Louis
East St. Louis
.
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