Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its
Question:
Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its products are enjoying a growing reputation and increased demand through-out the American Southwest. Because of the high cost of transporting soft drinks, it is considering a new plant to serve the states of New Mexico and Arizona. A key concern in its search for a new location is the resultant transportation costs to serve its key markets. Following is a list of cities where its main wholesale customers are located, along with estimated annual demand in cases of product for each.
a. Use the centroid method to recommend a location for the new bottling plant. Round your coordinates to one decimal place.
b. Do you have any concerns about the result? How would you deal withthem?
Step by Step Answer:
Operations And Supply Chain Management
ISBN: 287
14th Edition
Authors: F. Robert Jacobs, Richard Chase