Answer Happy

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.
Analyze in words where should the new plant be
located? Why?
Pocatello Portland (option 1) Demand 8 10 6000 3 3 3500 4 5 8000 7 8 1500 6 7 3000 12000 10000 Solution Plant Burlington Eureka Denver Philadelp Montreal Capacity Pocatello 6000 0 6000 0 0 12000 Portland (option 1) 0 3500 2000 1500 3000 10000 Demand 6000 3500 8000 1500 3000 Costs Plant Burlington Eureka Denver Philadelph Montreal Pocatello 48000 0 24000 0 0 Portland (option 1) 0 10500 10000 12000 21000 Total 125500 Cleveland: Plant Pocatello Cleveland (option 2) Demand Shipping Cost to Warehouse (per pair of skis) Burlington Eureka Denver Philadelp Montreal Capacity 8 3 4 7 6 12000 5 8 6 3 4 10000 6000 3500 8000 1500 3000 Solution Plant Pocatello Cleveland (option 2) Demand Burlington Eureka Denver Philadelp Montreal Capacity 0 3500 8000 0 500 12000 6000 0 0 1500 2500 10000 6000 3500 8000 1500 3000 Costs Plant Pocatello Cleveland (option 2) Burlington Eureka Denver Philadelp Montreal 0 10500 32000 0 3000 30000 0 0 4500 10000 Total 90000