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

The optimal solution with a new plant in East St. Louis.:

Dana Johnson Corp. is considering adding a fourth plant to its three

The optimal solution with a new plant in St. Louis.:

existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East

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).

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