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at the Boston Plant has increased to 6,000 and demand at the St. Louis Plant has increased to 2,000 for a total Demand increase of
at the Boston Plant has increased to 6,000 and demand at the St. Louis Plant has increased to 2,000 for a total Demand increase of 2,5 00 (i.e. 1,000 +1 ,500), 1b. Find the new optimal shipping schedule and how much it will cost 1c. As a result of increased demand, Foster Generators Inc. has decided to add a new plant which will provide expanded production capacity After some study, the location alternatives for the new plant have been reduced to York, Penn. and Clarksville Tenn. To help choose between the 2 locations, management has asked for information comparing the projected operating costs. Whichever plant is built will have a monthly capacity of 2,500 (to match the increased demand) and the transportation costs per unit shipped for each of the potential new plants to each of the distribution centers is: Destination Plant Boston Chicago St. Louis Lexington York 2 5 4 5 Clarksville 9 6 3 3 Assuming the cost of building and maintaining the 2 proposed plants are similar, based on the above operating costs where would you build the plant? Hint: Run Solver twice: One time with York as the 3'11 Plant and another time with Clarksville as the 3' plant. The run that gives you the lower cost is the where the new plant should be built
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