QUESTION 4 SPM Auto Inc., a manufacturer of machine parts, has seen its demand grow significantly. The company anticipates demand for the next year to be 750,000 units in Michigan, 950,000 units in Ohio and 100,000 units in Tennessee. Managers are designing the network and have selected three potential sites - California, Texas and North Carolina. Plants could have a capacity of 1,000,000 or 1,200,000 units. The annual fixed costs at the three locations are shown below along with the cost of producing and shipping each unit. Maple Auto wants to determine the locations for its plants. Formulate the problem. California Texas North Carolina $5.75 million $7.5 million $9.5 million Annual fixed cost of 500,000 h plant Annual fixed cost of 900,000 plant $9 million $12.5 million $16 million $200 $475 $300 Michigan Ohio $450 $425 $275 $500 $450 $225 Tennessee Attach File Browse My Computer for Copyright Cleared File Browse Content Collection