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5. Rauschenberg Manufacturing is investigating which locations would best position its new plant relative to three important customers (located in cities A, B, and C).
5. Rauschenberg Manufacturing is investigating which locations would best position its new plant relative to three important customers (located in cities A, B, and C). As shown in the table, all three customers require mul- tiple daily deliveries. Management limited the search for this plant to those three locations and compiled the following information: Location Coordinates (miles) Deliveries per Day A (100, 200) 8 B (400, 100) 4 C (1 DD, 1 00) 3 3. Which of these three locations yields the smallest total travel distance, based on Euclidean distances? b. Which of these locations is best, based on rectilinear distances? 0. What are the coordinates of the center of gravity? 10. Wiebe Trucking, Inc., is planning a new warehouse to serve the western United States. Denver, Santa Fe, and Salt Lake City are under consideration. For each loca- tion, annual fixed costs (rent, equipment, and insur- ance) and average variable costs per shipment (labor, transportation, and utilities) are listed in the following table. Sales projections range from 550,000 to 600,000 shipments per year. Variable Cost per Location Annual Fixed Costs Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest overall costs
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