Problem05: Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapo
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Problem05: Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapo
Problem05: Dana Johnson Corp. is considering adding a fourth plant to its three existing facilities in Decatur, Minneapolis, and Carbondale. Both St. Louis and East St. Louis are being considered. Evaluating only the transportation costs per unit as shown in the table, decide which site is best. FROM EXISTING PLANTS TO DECATUR MINNEAPOLIS CARBONDALE DEMAND Blue Earth $20 $17 $21 250 Ciro $25 $27 $20 200 Des Moines $22 $25 $22 350 Capacity 300 200 150 FROM PROPOSED PLANTS ST. LOUIS $27 $28 $31 150 TO Blue Earth Ciro Des Moines Capacity EAST ST. LOUIS $29 $30 $30 150