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Seng Choo Farm supplies eggs to two supermarkets. Supermarket X buys 600 eggs per week and is located 60 km away from A. Supermarket Y
Seng Choo Farm supplies eggs to two supermarkets. Supermarket X buys 600 eggs per week and is located 60 km away from A. Supermarket Y is 65 km away from A and buys 400 eggs per week. A lorry is used to carry goods from A to X and can carry 200 eggs at a cost of $2 per km. X and Y are 25 km apart and goods could be carried between them by a van which can carry 50 eggs at a cost of $1 per km. The only routes available are AX, AY and XY. An empty lorry/van trip is back to the farm for every delivery. Should Seng Choo Farm be located at A or at X or at Y? Justify your answer by calculating THREE (3) different scenario of transportation cost
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