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1. Ube King must decide between locating a new factory in Sampaloc or Legarda. Transportation costs from each proposed location to existing warehouses and

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1. Ube King must decide between locating a new factory in Sampaloc or Legarda. Transportation costs from each proposed location to existing warehouses and transportation costs for existing locations for a certain type of Hopia are shown in the following table. Each will be able to supply 2,500 units per month. Explain how to determine which location should be chosen on a transportation costs basis. From Cost From Cost Legarda per Sampaloc per Unit Unit AB A P10 A P12 8 B 13 C 15 C 5 From/To Warehouse A B C Supply 1 17 10 6 30 2 7 12 14 20 Demand 25 10 40

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