4. The Michael Corporation has plants in three cities. It distributes products from these plants to some customers and to two distribution centers. The company is planning to open a third distribution center in either Oklahoma City or Amarillo. The costs of shipping products from the company’s plants to its present and prospective distribution center locations are given in the following table along with the plant capacities and requirements for each distribution center. 

a. Determine the best distribution pattern if Amarillo is selected as the location for the new distribution center.

b. Determine the best distribution pattern if Oklahoma City is selected.

c. Compute the total distribution cost for parts a and 6, and determine which location yields the lowest total distribution cost.

d. What other factors might be important in the selection of a location for the new distribution center?

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Shipping Costs from Plants to Current and Potential Distribution Centers Plant DISTRIBUTION SAN SALT LAKE LITTLE CENTER JOSE CITY ROCK DEMAND AT DISTRIBUTION CENTER St. Louis $17 $13 $5 900 Phoenix 9 11 700 Amarillo 9 7 600 Oklahoma City 10 600 Capacity at plant 800 900 800