Question: Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both East St. Louis (option 1)

Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both East St. Louis (option 1) and St. Louis (option 2) are being considered.

From Existing Plants
To Decatur Minneapolis Carbondale Demand
Blue Earth $20 $17 $21 250
Ciro $25 $27 $20 200
Des Moines $22 $25 $22 350
Capacity 300 200 150
From Proposed Plants
To East St. Louis (option 1) St. Louis (option 2)
Blue Earth $29 $27
Ciro $30 $28
Des Moines $30 $31
Capacity 150 150
Location Production Costs ($)
Decatur $50
Minneapolis 60
Carbondale 70
East St. Louis 40
St. Louis 50

Evaluating only the transportation costs:

a. What is the cost considering East St. Louis = $ [ Select ] ["17,400", "18,500", "20,500", "17,250"]

b. What is the cost considering St. Louis? = $ [ Select ] ["17,400", "17,250", "16,500", "18,345"]

c. Which location would you choose? [ Select ] ["Both", "East St. Louis", "Neither", "St. Louis"]

Now use the transportation data and the unit production costs:

d. What is the cost considering East St. Louis? = $ [ Select ] ["63,450", "62,250", "59,600", "60,900"]

e. What is the cost considering St. Louis? = $ [ Select ] ["66,900", "63,250", "60,900", "62,250"]

f. Which location would you choose? [ Select ] ["Neither", "Both", "St. Louis", "East St. Louis"]

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