Question
King Corn The King Corn Company processes food for sale in discount food stores. It has two plants: one in Chicago and one in Houston.
King Corn
The King Corn Company processes food for sale in discount food stores. It has two plants: one in Chicago and one in Houston. The company also operates warehouses in Miami, Denver, Lincoln, and Jackson. Forecasts indicate that demand soon will exceed supply and that a new plant with a capacity of 6,000 cases is needed. The question is where to locate the new plant. Two potential sites are Auburn and Springfield. The two tables below give data on capacities, forecasted demand, and shipping costs that have been gathered.
| Miami | Denver | Lincoln | Jackson | Capacity | |
| Chicago | 5 $ | 6 $ | 1 $ | 3 $ | 12 000 |
| Houston | 7 $ | 2 $ | 2 $ | 5 $ | 10 000 |
| Auburn | 3 $ | 8 $ | 5 $ | 2 $ | 6 000 |
| Demand | 8000 | 9000 | 7000 | 4000 |
| Miami | Denver | Lincoln | Jackson | Capacity | |
| Chicago | 5 $ | 6 $ | 1 $ | 3 $ | 12 000 |
| Houston | 7 $ | 2 $ | 2 $ | 5 $ | 10 000 |
| Springfield | 5 $ | 4 $ | 4 $ | 1 $ | 6 000 |
| Demand | 8000 | 9000 | 7000 | 4000 |
For each alternative new plant location, determine the total cost of the shipping pattern that will minimize total transportation costs. Where should the new plant be located based on transportation costs?
The task can also be solved with the help of Vogel (with results evaluated according to Vogel's principles)
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Responsible Business Operations Challenges And Opportunities
Authors: Jayashankar M Swaminathan, Vinayak Deshpande
1st Edition
3030519562, 978-3030519568
