Question: Use the transportation method for location problems to solve a multiple-facility location problem. Petromax Corporation has two locations, Chicago and Houston. The company also

Use the transportation method for location problems to solve a multiple-facility locationproblem. Petromax Corporation has two locations, Chicago and Houston. The company also

Use the transportation method for location problems to solve a multiple-facility location problem. Petromax Corporation has two locations, Chicago and Houston. The company also operates storage in Miami, Denver, Omaha, and Mobile Forecasts indicate demand will soon exceed supply and that a new plant with a capacity of 6,500 units per week is needed, with future capacity of 8,000. the question is where should the new plant be located. Two potential sites are being considered, Buffalo and Atlanta. The table below gives the capacities, forecast demand, and shipping costs. Determine where the new location should be located using the transportation method for each potential location. Current locations Miami shipping Denver. shipping Omaha costs costs shipping costs Mobile shipping costs Capacity $7 Chicago $2 $3 $1 Huston $4 $5 10,000 15 $5. $2 9,000 Demand 7,000 9,000 4,500 5,000 25,500 Potential Locations $6 $9 $7 $4 6,500 Buffalo 3 $6 59 Buffalo Potential Locations $7 14 6.500 $2 $10 $8 $3 Atlanta 6.500 Compute the estimated annual total transportation costs associated using a tableau allocation of the existing locations and each of the potential locations to recommend one of the potential new sites. Click on the Excel file link below to open the a workbook to determine an optimal solution for a each new location and your recommendation for the best potential location. Place the values for the equation in cells and use a formula to compute your answer. Click to open: + Once finished press the yellow "CLICK HERE TO SAVE YOUR WORK" and then paste the resulting URL in the answer field below. If you press ENTER after you paste the URL, the text will change to red showing a link is submitted. Edit Format Table: 12pt ParagraphBIUA 2 T BE

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!