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Problem 1 Wile E. lCoyote has placed an order for 30 tons of TNT from Acme Enterprises. Acme can manufacture TNT using raw materials (2}
Problem 1 Wile E. lCoyote has placed an order for 30 tons of TNT from Acme Enterprises. Acme can manufacture TNT using raw materials (2} found in a remote underground mine. Acme needs 3 tons of Z to produce 1 ton of TNT and they are deciding where to locate their factory in order to minimize transportation costs. The mine and Wile E. Coyote's house are 50 miles apart. By train, the cost of shipping both TNT and Z is $2 per ton per mile. However, Acme faces an additional cost because a river passes between the mine and the Wile E. Coyote's house, and the river has no bridge. TNT must be loaded onto barges to cross the river, which is located 15 miles from the mine. Barge operators charge 51 perton of TNT shipped across the river. However, since the raw material 2 is highly explosive when mixed with water, barge operators charge Acme $195 to ship one ton of 2 across the river. Using the above information, nd the transport-cost-minimizing location for Acme's TNT factory. The answer can be found by computing transport costs at four locations: the mine, Wile E. lCovote's house, the mine side of the river, and Wile E. Coyote's side of river. Assume that the width of the river is negligible, so that it can be ignored. Show yourwork. Provide an intuitive explanation for your
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