Question: Location Problems Problem 1: A major drug store chain wishes to build a new warehouse to serve the whole Midwest. At the moment, it is

Location Problems Problem 1: A major drug store

Location Problems Problem 1: A major drug store chain wishes to build a new warehouse to serve the whole Midwest. At the moment, it is looking at three possible locations. The factors, weights, and ratings being considered are given below: Ratings Factor Weights Peoria Des Moines Chicago Nearess to markets Labor cost Taxes 15 10 Nearess to suppliers 10 6 10 Which city should they choose? Problem 2: Balfour's is considering building a plant in one of three possible locations. They have estimated the following parameters for each location: Location Variable Cost $5.75 Waco, Texas Tijuana, Mexico Fayetteville, Arkansas Fixed Cost $300,000 $800.000 $100.000 52.75 58.00 For what unit sales volume should they choose each location

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