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. The transportation costs per unit are shown in the table.

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

Using the unit production costs in the following table, show which locations yield the lowest cost.

Location

Production Costs ($)

Decatur

$50

Minneapolis

60

Carbondale

70

East St. Louis

40

St. Louis

50

LOADING...

Click the icon to view the optimal solution with a new plant in East St. Louis.

From

To

Decatur

Minneapolis

Carbondale

East St. Louis

Demand

Blue Earth

$70

$77

$91

$69

500

100

400

Ciro

$75

$87

$90

$70

300

250

50

Des Moines

$72

$85

$92

$70

550

400

150

Capacity

500

400

250

200

LOADING...

Click the icon to view the optimal solution with a new plant in St. Louis.

From

To

Decatur

Minneapolis

Carbondale

St. Louis

Demand

Blue Earth

$70

$77

$91

$77

500

400

100

Ciro

$75

$87

$90

$78

300

200

100

Des Moines

$72

$85

$92

$81

550

500

50

Capacity

500

400

250

200

pop-up content ends

PrintDone

Using the optimal solutions provided above, Dana Johnson Corp. should select

East St. Louis

St. Louis

with a total cost of

$enter your response here

(enter your response as a whole number).

Get more help

Clear all

Check answer

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!