6. A personal computer manufacturer plans to locate its as- sembly plant in Taiwan and to ship its computers back to the United States through either Los Angeles or San Francisco. It has distribution centers in Atlanta, New York, and Chicago and will ship to them from whichever city is chosen as the port of entry on the west coast. Overall transportation cost is the only criterion for choosing the port. Use the load- distance model and the information in Table 13.5 to select the more cost-effective city.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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TABLE 13.5 DISTANCES AND COSTS FOR PC MANUFACTURER
PORT OF ENTRY
Los Angeles
Distance (miles)
Shipping cost ($/unit)
San Francisco
Distance (miles)
Shipping cost ($/unit)
Distribution Center (units/year)
Chicago
10,000
1,800
0.0017/mile
1,700
0.0020/mile
Atlanta
7,500
2,600
0.0017/mile
2,800
0.0020/mile
New York
12,500
3,200
0.0017/mile
3,000
0.0020/mile
Transcribed Image Text:TABLE 13.5 DISTANCES AND COSTS FOR PC MANUFACTURER PORT OF ENTRY Los Angeles Distance (miles) Shipping cost ($/unit) San Francisco Distance (miles) Shipping cost ($/unit) Distribution Center (units/year) Chicago 10,000 1,800 0.0017/mile 1,700 0.0020/mile Atlanta 7,500 2,600 0.0017/mile 2,800 0.0020/mile New York 12,500 3,200 0.0017/mile 3,000 0.0020/mile
6. A personal computer manufacturer plans to locate its as-
sembly plant in Taiwan and to ship its computers back to the
United States through either Los Angeles or San Francisco. It
has distribution centers in Atlanta, New York, and Chicago
and will ship to them from whichever city is chosen as the
port of entry on the west coast. Overall transportation cost
is the only criterion for choosing the port. Use the load-
distance model and the information in Table 13.5 to select
the more cost-effective city.
Transcribed Image Text:6. A personal computer manufacturer plans to locate its as- sembly plant in Taiwan and to ship its computers back to the United States through either Los Angeles or San Francisco. It has distribution centers in Atlanta, New York, and Chicago and will ship to them from whichever city is chosen as the port of entry on the west coast. Overall transportation cost is the only criterion for choosing the port. Use the load- distance model and the information in Table 13.5 to select the more cost-effective city.
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