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Information for problems 12-13. Kent LCD Display wishes to locate and build a new manufacturing facility, which produce the next generation LCD screens. This
Information for problems 12-13. Kent LCD Display wishes to locate and build a new manufacturing facility, which produce the next generation LCD screens. This new plant will serve its main customers in Cleveland, Pittsburg and Columbus with demands of 10,000, 20,000 and 30,000 units respectively. The transportation costs from the new plant to the market cost $5.00 per 100-units- mile. It has two part-suppliers located in Detroit and Cincinnati, which supplies 80,000 and 30,000 units, and transportation cost of $1.00 and $2.00, respectively. The coordinates of the five cities are given in the table below. I use the center-of-gravity method on our excel spreadsheet to calculate the location of this new plant that minimizes the total inbound and outbound transportation costs. All results from excel solver are given below. The optimal location found by the center-of-gravity method is at coordinate (200,200) with minimum cost of $509,186. Suppliers/ Fn Dn Coordinates Markets $/100-unit-mile 100-Units Xn dn Detroit 1.00 800 150 300 112 Suppliers Cincinnati 2.00 300 100 100 141 Cleveland 5.00 100 300 300 ? Markets Pittsburgh 5.00 200 350 250 158 Facility Columbus 5.00 300 150 150 71
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