Question: PROBLEM # 4 A firm that specializes in nonferrous casting must decide between locating a new foundry in Chicago or Detroit. Transportation costs from each

PROBLEM # 4
A firm that specializes in nonferrous casting must decide between locating a new foundry in Chicago or Detroit. Transportation costs from each proposed location to existung locations for a certain type of casting are shown in the following table. Each will be able to supply 2500 units per month . Explain how to determine which location should be chosen based on the transportation cost.
From Detroit to Cost per Unit
A $10
B 8
C 15
From Chicago to Cost per Unit
A $12
B 13
C 5
WAREHOUSE
A B C SUPPLY (hundreds of units/ month)
FOUNDRY 1 17 10 6 30
2 7 12 14 20
DEMAND (hundreds of units/month) 25 10 40

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