Problem 4. The Grand Prairie distributor referred your consulting firm to a close friend that is the owner of two fountain pen ink manufacturing plants in the United States. The manufacturing plants are located 2.230 miles driving distance apart in Salt Lake City, UNT and Norfolk, VA (driving distance see map below). The owner wants to have a better understanding of the market reach for each manufacturing plant. He recognizes that any overlap between the two plants would result in wasteful spending and competition. The Norfolk, VA manufacturing plant has a production cost of approximately $75,500 per truckload of their premium fountain pen ink. They have negotiated an outbound rate of $2.15 per mile with a TL motor carrier. The Salt Lake City manufacturing plant also has a $75,500 production cost per truckload volume. but the Salt Lake City plant has been able to identify a backhaul on a non- competing private carrier. Their outbound rate is $2.25 per mile. The CEO of your consulting firm has assigned this task to you. You need to provide the answer to "What is the market reach for both the Norfolk and Salt Lake City manufacturing facilities?" Ensure your answer clearly indicates the market reach for each manufacturing plant (the market reach for each plant needs to be stated). Homework #1 Facility Location, Spring 2020 Page 11 Problem 4. The Grand Prairie distributor referred your consulting firm to a close friend that is the owner of two fountain pen ink manufacturing plants in the United States. The manufacturing plants are located 2.230 miles driving distance apart in Salt Lake City, UNT and Norfolk, VA (driving distance see map below). The owner wants to have a better understanding of the market reach for each manufacturing plant. He recognizes that any overlap between the two plants would result in wasteful spending and competition. The Norfolk, VA manufacturing plant has a production cost of approximately $75,500 per truckload of their premium fountain pen ink. They have negotiated an outbound rate of $2.15 per mile with a TL motor carrier. The Salt Lake City manufacturing plant also has a $75,500 production cost per truckload volume. but the Salt Lake City plant has been able to identify a backhaul on a non- competing private carrier. Their outbound rate is $2.25 per mile. The CEO of your consulting firm has assigned this task to you. You need to provide the answer to "What is the market reach for both the Norfolk and Salt Lake City manufacturing facilities?" Ensure your answer clearly indicates the market reach for each manufacturing plant (the market reach for each plant needs to be stated). Homework #1 Facility Location, Spring 2020 Page 11