Problem: "Fireside Tire Company, a manufacturer of radial tires for sport utility vehicles, sells its products in the automotive aftermarket and distribution them throughout the United States. Fireside has three tire production plants located in Allentown, Pennsylvania; Toledo, Ohio; and Macomb, Illinois (see map). Normally, Fireside ships tires from its plants to distribution centers, but truckload-size purchases typically are transported directly from plants to customer locations. All shipments to a region move under truck-load rates applying to a minimum weight of 40,000 pounds, or 400 cwt. Fireside management is concerned about the most economical location for a distribution center to serve its southeastern region, consisting of North Carolina, South Carolina, Georgia, Florida, Mississippi, Alabama, and southeastern Tennessee. Although an Atlanta distribution center currently serves this region, Fireside management is concerned that the Atlanta location is nolt the most logistically sound alternative. To help the logistics department conduct an analysis of this region's distribution center location using the grid method. Fireside's transportation department developed the following data based on projections for 2008: 2008 Shipments to Atlanta Grid Coordinates From CWT RATE/CWT Mileage Horizontal Vertical Toledo 15K $2.20 640 1,360 1,160 Macomb 5K $2.43 735 980 1,070 Allentown 11K $2.52 780 1,840 1,150 2008 Shipments From Atlanta Grid Coordinates TO CWT Horizontal Vertical Chattanooga 2,700 1,350 650 Atlanta 3,500 1,400 600 Tampa 4,300 1,570 220 Birmingham 2,800 1,260 580 Miami 5,300 1,740 90 Jacksonville 5,100 1,600 450 Columbia 2,200 1,600 650 Charlotte 2,900 1,590 740 Raleigh/Durham 2,200 1,700 800 The transportation department also determined that total freight expenditures from the Atlanta distribution center during 2007 were $217,000 and that the average shipment distance was 330 miles. Attach a copy of your completed Excel worksheet found in the Doc Sharing. Use Excel to complete the table and calculations! Show the details behind the results. Use $7/CWT for shipments "From Atlanta." Case Questions: 1. Based on the available information, is Atlanta the best location for a distribution center to serve the southeastern region? If not, what would you recommend?

Grid Technique Analysis for Fireside Tire Co. PART A Rate/CWT-mile (a) 2.2 2.43 2.52 Totals: CWT (b) 15000 5000 11000 31000 Horizontal 1360 980 1840 Vertical 1160 1070 1150 7 7 7 7 7 7 7 7 2700 3500 4300 2800 5300 5100 2200 2900 1350 1400 1570 1260 1740 1600 1600 1590 650 600 220 580 90 450 650 740 25,515,000 34,300,000 47,257,000 24,696,000 64,554,000 57,120,000 24,640,000 32,277,000 12,285,000 14,700,000 6,622,000 11,368,000 3,339,000 16,065,000 10,010,000 15,022,000 7 2200 1700 800 26,180,000 Totals: 31000 12,320,000 101,731,00 0 Grid Coordinates Sources/Markets Toledo (s1) Macomb (s2) Allentown (s3) Chattanooga (m1) Atlanta (m2) Tampa (m3) Birmingham (m4) Miami (m5) Jacksonville (m6) Columbia (m7) Charlotte (m8) Raleigh/Durham (m9) Calculations A*B*Horizont A*B*Vertic al al 44,880,000 38,280,000 11,907,000 13,000,500 51,004,800 31,878,000 107,791,800 83,158,500 336,539,000 Coordinates: Horizontal 107,791,800 444,330,800 Numerator + Denominato r + Grid Location: Vertical 83,158,500 101,731,00 0 184,889,50 0 72870 217000 289870 72870 217000 289870 ????? ????? 336,539,000 Some additional "Tips" to note; 1. Use Excel to complete the table and calculations! Show the details behind the results. 2. Familiarize yourself with the "Example of a Heuristic Modeling Approach: The Grid Technique" described starting on pg 542. 3. Note the meaning of the "Lower" and "Upper-Case" variables denoted on pg544. Lower Case = Raw materials, Upper-Case = Finished Goods. 4. Study Table 12-2 to verify the Grid Center justifies Atlanta; does it or not, verify how close the number comes to the locations specified on pg 558. 5. Given the state of freight costs and different modes available, does it make sense for the business, what would you recommend. 6. Complete Item #1 only! "Fireside Tire Company, a manufacturer of radial tires for sport utility vehicles, sells its products in the automotive aftermarket and distribution them throughout the United States. Fireside has three tire production plants located in Allentown, Pennsylvania; Toledo, Ohio; and Macomb, Illinois (see map). Normally, Fireside ships tires from its plants to distribution centers, but truckload-size purchases typically are transported directly from plants to customer locations. All shipments to a region move under truckload rates applying to a minimum weight of 40,000 pounds, or 400 cwt. Fireside management is concerned about the most economical location for a distribution center to serve its southeastern region, consisting of North Carolina, South Carolina, Georgia, Florida, Mississippi, Alabama, and southeastern Tennessee. Although an Atlanta distribution center currently serves this region, Fireside management is concerned that the Atlanta location is nolt the most logistically sound alternative. To help the logistics department conduct an analysis of this region's distribution center location using the grid method. Fireside's transportation department developed the following data based on projections for 2008: 2008 Shipments to Atlanta Grid Coordinates From CWT RATE/CWT Mileage Horizontal Vertical Toledo 15K $2.20 640 1,360 1,160 Macomb 5K $2.43 735 980 1,070 Allentown 11K $2.52 780 1,840 1,150 2008 Shipments From Atlanta Grid Coordinates TO CWT Horizontal Vertical Chattanooga 2,700 1,350 650 Atlanta 3,500 1,400 600 Tampa 4,300 1,570 220 Birmingham 2,800 1,260 580 Miami 5,300 1,740 90 Jacksonville 5,100 1,600 450 Columbia 2,200 1,600 650 Charlotte 2,900 1,590 740 Raleigh/Durham 2,200 1,700 800 The transportation department also determined that total freight expenditures from the Atlanta distribution center during 2007 were $217,000 and that the average shipment distance was 330 miles. Use Excel to complete the table and calculations! Show the details behind the results. Use $7/CWT for shipments "From Atlanta." Case Questions: 1. Based on the available information, is Atlanta the best location for a distribution center to serve the southeastern region? If not, what would you recommend? Attached is what I know. I am trying to set up an excel document