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

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 PlantsToDecaturMinneapolisCarbondaleDemandBlue Earth$20$17$21250Ciro$25$27$20200Des Moines$22$25$22350Capacity300200150
From Proposed PlantsToEast St. Louis (option 1)St. Louis (option 2)Blue Earth$29$27Ciro$30$28Des Moines$30$31Capacity150150
LocationProduction Costs ($)Decatur$50Minneapolis60Carbondale70East St. Louis40St. Louis50
Evaluating only the transportation costs:
a. What is the cost considering East St. Louis = $[ Select ]["17,400","20,500","18,500","17,250"]
b. What is the cost considering St. Louis? = $[ Select ]["18,345","16,500","17,400","17,250"]
c. Which location would you choose? [ Select ]["Neither", "East St. Louis", "Both", "St. Louis"]
Now use the transportation data and the unit production costs:
d. What is the cost considering East St. Louis? = $[ Select ]["63,450","60,900","62,250","59,600"]
e. What is the cost considering St. Louis? = $[ Select ]["62,250","63,250","66,900","60,900"]
f. Which location would you choose? [ Select ]["Both", "East St. Louis", "St. Louis", "Neither"]

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