Section 3) South Africa and Zimbabwe have the largest supply of platinum. They decide to build a platinum processing plant to handle the four largest platinum mines in Southern Africa. a) Using the technique in Chapter 5 and the data in table 3 determine the best location for the processing plant. (10% of grade) Table 3: Location of supply sources (platinum mines) Source Transportation Quantity in Latitude Longitude (Mine) Cost $/Ton Mile 1000 ounces X. Sout 0.90 184 31.5 18.4 Nqutu 0.95 160 28.2 30.4 Addo 0.85 208 33.5 25.7 Zim plant 0.82 210 15 27 b) It would be more realistic to take into account the projected costs for the next three years in deciding on the location of a major project like a new platinum processing plant. Calculate the location of the plant based on the projected production in table 4. You must also consider that there is a 50% chance of transportation cost going up 25% each year and a 50% change of 5% reduction in transportation cost each year. Use decision tree to calculate the expected transport cost for each year (hint you need to modify equation 5.5) (10% of grade) Table 4: Projected production in 1000 ounces (platinum mines) Year 2020 2021 2022 2023 Sout 184 190 160 120 Nqutu 160 160 170 170 Addo 208 230 260 330 Zim plant 210 215 220 225 Section 3) South Africa and Zimbabwe have the largest supply of platinum. They decide to build a platinum processing plant to handle the four largest platinum mines in Southern Africa. a) Using the technique in Chapter 5 and the data in table 3 determine the best location for the processing plant. (10% of grade) Table 3: Location of supply sources (platinum mines) Source Transportation Quantity in Latitude Longitude (Mine) Cost $/Ton Mile 1000 ounces X. Sout 0.90 184 31.5 18.4 Nqutu 0.95 160 28.2 30.4 Addo 0.85 208 33.5 25.7 Zim plant 0.82 210 15 27 b) It would be more realistic to take into account the projected costs for the next three years in deciding on the location of a major project like a new platinum processing plant. Calculate the location of the plant based on the projected production in table 4. You must also consider that there is a 50% chance of transportation cost going up 25% each year and a 50% change of 5% reduction in transportation cost each year. Use decision tree to calculate the expected transport cost for each year (hint you need to modify equation 5.5) (10% of grade) Table 4: Projected production in 1000 ounces (platinum mines) Year 2020 2021 2022 2023 Sout 184 190 160 120 Nqutu 160 160 170 170 Addo 208 230 260 330 Zim plant 210 215 220 225