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Blue Computers, a major server manufacturer in the U.S., currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million

Blue Computers, a major server manufacturer in the U.S., currently has plants in Kentucky and Pennsylvania. The Kentucky plant has a capacity of 1 million units a year, and the Pennsylvania plant has a capacity of 1.5 million units per year. The firm divides the U.S. into five markets: northeast, southeast, Midwest, south, and west. Each server sells for $1,000. The firm anticipates a 50% growth in demand (in each region) this year and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. Potential sites being considered are in North Carolina and California.

Variable Production and Shipping Costs for Blue Computers ($ per unit)

Northeast

Southeast

Midwest

South

West

Annual Fixed Cost (million $)

Kentucky

185+22

180

175

175

200

150

Pennsylvania

170

190

180

200

220

200

N. Carolina

180

180

185

185

215

150

California

220

220

195

195

175

150

Demand (in 1000 units)

700

400

400

300

600

Optimize the Blue Computers production and shipping network. Where should they build their new plant?

Please show me how to solve in Excel.

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