Question: Problem 16 15 Question Help The Giant Farmer Company processes food for sale in discount food stores. It has two plants: one in Chicago and

Problem 16 15 Question Help The Giant Farmer

Problem 16 15 Question Help The Giant Farmer Company processes food for sale in discount food stores. It has two plants: one in Chicago and one in Houston. The company also operates warehouses in Miami, Florida; Denver, Colorado; Lincoln, Nebraska; and Jackson, Mississippi. Forecasts indicate that demand soon will exceed supply and that a new plant with a capacity of 8,000 cases per week is needed. The question is where to locate the new plant. Two potential sites are Buffalo and Atlanta. The two tables below give data on capacities, forecasted demand, and shipping costs that have been gathered. D Plant Chicago Houston New plant Capacity Warehouse (cases per week) 10,000 Miami 7,500 Denver 8.000 Lincoln Total 25,500 Jackson Demand Shipping Cost to Warehouse (per case) (cases per week) Plant Miami Denver Lincoln Jackson 7,000 Chicago $6.00 $3.00 $4.00 $5.00 9.0001 Houston $3.00 $1.00 $4.00 $3.00 Buffalo 4,500 $6.00 $9.00 $6.00 $2.00 (alternative 1) Atlanta 5,000 $3.00 $9.00 $5.00 (alternative 2) $2.00 Total 25,500 For each alternative new plant location, determine the total cost of the shipping pattern that will minimize total transportation costs. Where should the new plant be located? If the new plant is located in Buffalo, the optimal cost is $(Enter your response as a whole number.) Enter your answer in the answer box and then click Check Answer. 2 parts 2 remaining Clear All Check

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