"Case study B.1 Plant Location for Tru-Blade Ski Company The Tru-Blade Ski Company makes downhill skis and snowboards fo

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"Case study B.1 Plant Location for Tru-Blade Ski
Company
The Tru-Blade Ski Company makes downhill skis and snowboards for
recreational winter sport enthusiasts. Business has been growing
rapidly, and the firm has outgrown its single factory location in
Pocatello, Idaho. Tru-Blade has warehouses in five locations:
Burlington, Vermont; Eureka, California; Denver, Colorado;
Philadelphia, Pennsylvania; and Montreal, Québec, Canada. Managers
have forecast that a new production plant with a capacity of 10,000
units per month will soon be needed, and they have decided to
consider where such a plant should be located. They have narrowed
their list to two possible locations—Portland, Oregon, and
Cleveland, Ohio—and have identified empty factory buildings that
would require minimal conversion costs. The following two tables
give the capacities, forecasted demand, and shipping costs
associated with these options.
You are a supply chain expert hired by Tru-Blade to help
its managers make this location decision. For the alternative plant
locations, determine the shipping patterns that will minimize total
transportation costs. Where should the new plant be located?
Why?"