Question: Problem 1. Eagle Manufacturing and Logistics (EM&L) is considering where to locate a distribution center to support eight key customers located across Texas. The customer

Problem 1. Eagle Manufacturing and Logistics

Problem 1. Eagle Manufacturing and Logistics (EM&L) is considering where to locate a distribution center to support eight key customers located across Texas. The customer locations are shown on the map on the next page. The projected transportation rates and volumes are shown in the following table. Determine the location for the distribution center and total cost using the center of gravity approach. Y 20 Customer Midland Laredo Wichita Falls Corpus Christi McAllen Odessa Dallas El Paso Port Arthur San Antonio Total 12 18 22 23 21 11 24 1 30 20 6 20 7 3 V R 20,000 $ 2.01 36,000 $ 2.10 15,000 $ 1.95 28,000 $ 1.85 25,750 $ 2.20 15,000 $ 2.25 47,500 $ 1.80 32,000 $ 1.75 25,000 $ 2.00 40,000 $ 1.90 W 40,200.00 75,600.00 29,250.00 51,800.00 56,650.00 33,750.00 85,500.00 56,000.00 50,000.00 76,000.00 554,750.00 19 21 19 14 12

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