For each alternative new plant location, determine the shipping pattern that will minimize total transportation costs. Where should the new plant be located? Plant Capacity (Cases per Week) Warehouse Demand (Cases per Week) Chicago 10,000 Miami 7,000 Houston 7,500 Denver 9,000 New plant 8,000 Lincoln 4,500 Total 25,500 Jackson 5,000 Total 25,500 Shipping Cost to Warehouse (per Case) Plant Miami Denver Lincoln Jackson Chicago $7.00 $2.00 $4.00 $5.00 Houston $3.00 $1.00 $5.00 $2.00 Buffalo (alternative 1) $6.00 $9.00 $7.00 $4.00 Atlanta (alternative 2) $2.00 $10.00 $8.00 $3.00

For each alternative new plant location, determine the shipping pattern that will minimize total transportation costs. Where should the new plant be located? Plant Capacity (Cases per Week) Warehouse Demand (Cases per Week) Chicago 10,000 Miami 7,000 Houston 7,500 Denver 9,000 New plant 8,000 Lincoln 4,500 Total 25,500 Jackson 5,000 Total 25,500 Shipping Cost to Warehouse (per Case) Plant Miami Denver Lincoln Jackson Chicago $7.00 $2.00 $4.00 $5.00 Houston $3.00 $1.00 $5.00 $2.00 Buffalo (alternative 1) $6.00 $9.00 $7.00 $4.00 Atlanta (alternative 2) $2.00 $10.00 $8.00 $3.00

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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Plant	Capacity (Cases per Week)	Warehouse	Demand (Cases per Week)
Chicago	10,000	Miami	7,000
Houston	7,500	Denver	9,000
New plant	8,000	Lincoln	4,500
	Total 25,500	Jackson	5,000
			Total 25,500

	Shipping Cost to Warehouse (per Case)
Chicago	$7.00	$2.00	$4.00	$5.00
Houston	$3.00	$1.00	$5.00	$2.00
Buffalo (alternative 1)	$6.00	$9.00	$7.00	$4.00
Atlanta (alternative 2)	$2.00	$10.00	$8.00	$3.00

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	Shipping Cost to Warehouse (per Case)
Plant	Miami	Denver	Lincoln	Jackson
Chicago	$7.00	$2.00	$4.00	$5.00
Houston	$3.00	$1.00	$5.00	$2.00
Buffalo (alternative 1)	$6.00	$9.00	$7.00	$4.00
Atlanta (alternative 2)	$2.00	$10.00	$8.00	$3.00