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Blue Computers, a major server manufacturer in the United States, currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1
Blue Computers, a major server manufacturer in the United States, currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of million units a year, and the Pennsylvania plant has a capacity of million units a year. The firm divides the United States into five markets: northeast, southeast, Midwest, south, and west. Each server sells for $The firm anticipates a percent growth in demand in each region this year after which demand will stabilize and wants to build a plant with a capacity of million units per year to accommodate the growth. Potential sites being considered are in North Carolina and California. where should it build the new plant? How should the network be structured?
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