Suppose now that the three locations (Memphis, Philadelphia, Toledo) are potential locations, i.e., each plant would only

Question:

Suppose now that the three locations (Memphis, Philadelphia, Toledo) are potential locations, i.e., each plant would only be constructed if it improves overall cost (i.e., transportation plus plant fixed costs). The data is repeated here with the (annualized) plant fixed costs shown additionally.

image text in transcribed
What changes would you make to the model in part (a) so that we can determine the optimal locations of the plants as well as the optimal demand allocation (i.e. minimize both transportation as well as fixed costs).
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: