Question
Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both East St. Louis (option 1)
Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both East St. Louis (option 1) and St. Louis (option 2) are being considered.
From Existing Plants | ||||
---|---|---|---|---|
To | Decatur | Minneapolis | Carbondale | Demand |
Blue Earth | $20 | $17 | $21 | 250 |
Ciro | $25 | $27 | $20 | 200 |
Des Moines | $22 | $25 | $22 | 350 |
Capacity | 300 | 200 | 150 |
From Proposed Plants | ||
---|---|---|
To | East St. Louis (option 1) | St. Louis (option 2) |
Blue Earth | $29 | $27 |
Ciro | $30 | $28 |
Des Moines | $30 | $31 |
Capacity | 150 | 150 |
Location | Production Costs ($) |
---|---|
Decatur | $50 |
Minneapolis | 60 |
Carbondale | 70 |
East St. Louis | 40 |
St. Louis | 50 |
Evaluating only the transportation costs:
a. What is the cost considering East St. Louis = $ [ Select ] ["17,400", "18,500", "20,500", "17,250"]
b. What is the cost considering St. Louis? = $ [ Select ] ["17,400", "17,250", "16,500", "18,345"]
c. Which location would you choose? [ Select ] ["Both", "East St. Louis", "Neither", "St. Louis"]
Now use the transportation data and the unit production costs:
d. What is the cost considering East St. Louis? = $ [ Select ] ["63,450", "62,250", "59,600", "60,900"]
e. What is the cost considering St. Louis? = $ [ Select ] ["66,900", "63,250", "60,900", "62,250"]
f. Which location would you choose? [ Select ] ["Neither", "Both", "St. Louis", "East St. Louis"]
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