Question: [QX] 9-20 Don Levine Corporation is considering adding an additional plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and

[QX] 9-20 Don Levine Corporation is considering

[QX] 9-20 Don Levine Corporation is considering adding an additional plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per unit, as shown in the tables below, which site is better? Ciro TO Blue Earth Des Moines Capacity Blue Earth Ciro Des Moines Capacity Decatur Minneapolis Carbondale East ST. Louis ST. Louis $20 25 22 DECATUR 300 $29 $30 $30 LOCATION 150 $17 27 25 200 MINNEAPOLIS $50 60 70 FROM EXISTING PLANTS 40 50 $21 EAST ST. LOUIS 20 22 150 [QX] 9-21 Using the data from Problem 9-20 plus the unit production costs shown in the following table, which locations yield the lowest cost? CARBONDALE FROM PROPOSED PLANTS $27 $28 $31 150 DEMAND PRODUCTION COSTS 250 200 350 ST. LOUIS

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