A television manufacturer in Seoul plans to export television sets to India through either Chennai or Visakhapatnam ports. It has distribution centers in Bhopal, Mumbai, and Hyderabad and will ship to them from whichever city is chosen as the port of entry. TV sets are transported to the distribution centers via large containers. Each container can carry 400 units. Overall transportation cost is the only criterion for choosing the port. Use the load-distance model and the information in Table 13.5 to select the more cost-effective city.

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PORT OF ENTRY Visakhapatnam Distance (kilometers) Shipping cost (*/km) Chennai Distance (kilometers) Shipping cost (*/km) Distribution Center (units/year) Bhopal Mumbai Hyderabad 10,000 16,000 20,000 1,100 35 1,500 33 1,300 35 1,200 33 630 35 630 33