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

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. Carbondale From Existing Plants Decatur Minneapolis Blue Earth $20 $17 $25 $27 Des Moines $22 $25 Capacity 300 200 $21 $20 Demand 250 200 350 Ciro $22 150 From Proposed Plants East St. Louis St. Louis (option 1) (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] b. What is the cost considering St. Louis? $ [Select) Which location would you choose? (Select] Now use the transportation data and the unit production costs: d. What is the cost considering East St. Louis?=$ Select e. What is the cost considering St. Louis? - $ Select] f. Which location would you choose? (Select]

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!