Agri-Products Company has two factories, one at Tiruchi and one at Meerut. There are four major warehouses

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Agri-Products Company has two factories, one at Tiruchi and one at Meerut. There are four major warehouses to which the finished products are sent: at Guwahati, Nagpur, Ahmedabad and Chandigarh. The Company is thinking of locating an additional factory either at Indore or at Kanpur. If the following matrix gives the details of the shipping costs,

manufacturing capacities and warehouse requirements, how would you go about choosing between the two proposed locations, i.e. Indore and Kanpur. Suggest an approach.
Shipping costs Rs. per unit Place Guwahati Nagpur Ahmedabad Chandigarh Factory Capacity Tiruchi 25 9 10 20 200 Meerut 10 8 6 5 400 Indore 15 2 3 10 200 Kanpur 10 5 7 5 200 Units required 100 150 300 250

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