A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below Existing facilities Annual L to or from fact cost Coordinate location Wood supplier 120 10 (100, 400) Fabric supplier 200 10 (800,700) Ware h 1 61 10 (300, 600) Ware h 2 40 10 (200, 100) Ware h 3 70 10 (600, 200) Using the median load answer the following questions –Where the factory should be located to minimize annual transportation cost –What will be the minimum annual transportation cost

Practical Management Science
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A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below

Existing facilities

Annual L to or from fact

cost

Coordinate location

Wood supplier

120

10

(100, 400)

Fabric supplier

200

10

(800,700)

Ware h 1

61

10

(300, 600)

Ware h 2

40

10

(200, 100)

Ware h 3

70

10

(600, 200)

  • Using the median load answer the following questions

–Where the factory should be located to minimize annual transportation cost

–What will be the minimum annual transportation cost

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