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.:

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

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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