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If the vice president eventually decides to consolidate into a single warehouse for British Columbia, what location should Steve propose? What would be the impact
If the vice president eventually decides to consolidate into a single warehouse for British Columbia, what location should Steve propose? What would be the impact on both primary as well as secondary transportation costs? Using centre-of-gravity as an approximate guideline, apply qualitative location criteria to propose a good location closer to the centre-of-gravity.
Table 1: Distribution Costs and Throughputs Serving Distribution Recent Secondary Projected Annual Retailer Recent Annual Centre Throughput (kg) Transport Costs Throughput (kg) Kelowna Kamloops 5,000,000.00 $1,180,000.00 6,000,000.00 Salmon Arm Kamloops 2,500,000.00 $367,450.00 3,250,000.00 Merritt Kamloops 2,000,000.00 $241,300.00 2,500,000.00 Williams Lake Kamloops 1,000,000.00 $388,750.00 1,500,000.00 Langley Abbotsford 6,200,000.00 $295,500.00 7,500,000.00 Richmond Abbotsford 5,000,000.00 $541,000.00 5,500,000.00 Mission Abbotsford 3,500,000.00 $70,250.00 4,000,000.00 Hope Abbotsford 250,000.00 $29,000.00 3,000,000.00 Table 2: Acceptable Distances and Coordinates Acceptable Distances (km) Coordinates Retail Locations Kamloops Abbotsford X-coordinate Y-coordinate in BC Kelowna 170 325 128.00 80.00 Salmon Arm 110 395 130.00 128.00 Merritt 90 205 98.00 95.00 Williams Lake 290 480 72.00 190.00 Langley 320 35 70.00 40.00 Richmond 370 80 65.00 50.00 Mission 290 15 75.00 43.00 Hope 205 85 90.00 60.00 Kamloops 0 290 105.00 125.00 Abbotsford 290 0 75.00 41.00Step by Step Solution
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