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Integrated Products Corporation (IPC) is evaluating the economics of locating a new man- ufacturing plant at two alternative locations, Flagstaff and Tulsa. IPC needs more
Integrated Products Corporation (IPC) is evaluating the economics of locating a new man- ufacturing plant at two alternative locations, Flagstaff and Tulsa. IPC needs more pro- duction capacity for its line of small-business computers than its two present plants at At- lanta and El Paso can provide. One of the most important factors in this decision is which location will result in the lowest annual shipping cost from the three manufacturing plants to the five regional warehouses. The following shipping cost and production capacity es- timates apply: Plant Annual Capacity (computers) Annual Requirement Warehouse (computers) Atlanta El Paso 3,400 Chicago 2,350 4,600 Dallas 2,800 Flagstaff or Tulsa 5,000 Denver 1.450 New York 3,700 San Jose 2,700 Shipping Cost per Shipping Cost per Plant Warehouse Computer Plant Warehouse Computer Atlanta Chicago $ 45 Flagstaff Chicago $ 70 Dallas 50 Dallas 45 Denver New York San Jose El Paso Chicago $ 60 Dallas 88 89 70 Denver 40 55 100 New York 100 San Jose 50 Tulsa Chicago $ 50 40 Dallas 30 Denver 45 Denver 50 New York 105 New York 100 San Jose 50 San Jose 70 Find the best location for the new plant
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