Question
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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