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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 Decatur Minneapol is Carbondale Demand To Blue Earth $20 $17 $21 $20 250 Ciro $25 Des Moines $22 $27 $25 200 200 350 $22 150 Capacity 300 From Proposed Plants East St. Louis St. Louis To (option 2) (option 1) Blue Earth $29 $27 Ciro $30 $28 Des Moines $30 $31 Capacity 150 150 Production Costs ($) Location $50 Decatur 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] b.What is the cost considering St. Louis? = $ [Select] c. Which location would you choose? Both Now use the transportation data and the unit production costs: d. What is the cost considering East St. Louis? = $ [Select ] [Select] e. What is the cost considering St. Louis? = $ Select] f.Which location would you choose
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