Question: please answer a and b in that order 5. (30 points) Show your work to earn full credit StayCool, a manufacturer of high-quality refrigerators in
please answer a and b in that order
5. (30 points) Show your work to earn full credit StayCool, a manufacturer of high-quality refrigerators in India has one factory, located in Mumbai. Due to rapidly growing demand, the CEO of StayCool has decided to set up another factory to serve its southern markets. The supply chain manager is asked to find a suitable location for the new factory. Four parts plants, located in Chennai, Bengaluru, Hyderabad, and Mumbal, will supply parts to the new factory, which will serve major markets in Andhra Pradesh (AP), Karnataka (KK), Kerala (KL), and Tamil Nadu (TN). The coordinate location, the demand in each market, the required supply from each parts plant, and the shipping cost for each supply source or market are shown in the table below. a. Find out the x, y coordinates for the new factory which minimizes the total transportation cost. What is the total cost? [Hint: use Gravity location model Excel template). b. Using the grid technique, re-calculate the x, y coordinates for the new factory which minimizes total transportation cost. What is the total cost? (Hint: use Grid technique Excel template) Compare the answers of (a) and (b). Are location decisions in (a) and (b) the same? If they differ, explain why C. Locations of Supply Sources and Markets for StayCool refrigerators Sources/Markets Transportation Cost Quantity in Tons (D.) Coordinates Rupees/Ton Mile (F.) X, Supply Sources Bengaluru 35 500 300 300 Chennai 32 600 500 300 Hyderabad 28 450 400 825 Mumbai 33 750 100 1100 Markets Andhra Pradesh 40 650 450 425 Karnataka 40 500 200 400 Kerala 40 550 250 150 Tamil Nadu 40 600 400 200 5. (30 points) Show your work to earn full credit StayCool, a manufacturer of high-quality refrigerators in India has one factory, located in Mumbai. Due to rapidly growing demand, the CEO of StayCool has decided to set up another factory to serve its southern markets. The supply chain manager is asked to find a suitable location for the new factory. Four parts plants, located in Chennai, Bengaluru, Hyderabad, and Mumbal, will supply parts to the new factory, which will serve major markets in Andhra Pradesh (AP), Karnataka (KK), Kerala (KL), and Tamil Nadu (TN). The coordinate location, the demand in each market, the required supply from each parts plant, and the shipping cost for each supply source or market are shown in the table below. a. Find out the x, y coordinates for the new factory which minimizes the total transportation cost. What is the total cost? [Hint: use Gravity location model Excel template). b. Using the grid technique, re-calculate the x, y coordinates for the new factory which minimizes total transportation cost. What is the total cost? (Hint: use Grid technique Excel template) Compare the answers of (a) and (b). Are location decisions in (a) and (b) the same? If they differ, explain why C. Locations of Supply Sources and Markets for StayCool refrigerators Sources/Markets Transportation Cost Quantity in Tons (D.) Coordinates Rupees/Ton Mile (F.) X, Supply Sources Bengaluru 35 500 300 300 Chennai 32 600 500 300 Hyderabad 28 450 400 825 Mumbai 33 750 100 1100 Markets Andhra Pradesh 40 650 450 425 Karnataka 40 500 200 400 Kerala 40 550 250 150 Tamil Nadu 40 600 400 200