Ashley’s Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to open a third plant and has narrowed the choice to one of two cities-New Orleans or Houston. The pertinent production and distribution costs, as well as the plant capacities and distribution demands, are shown in the table. from/to LA NY NORMAL PRODUCTION UNIT PRODUCTION ATLANTA 8 5 600 6 TULSA 4 7 900 5 NEW ORLEANS 5 6 500 4 ANTICIPATED HOUSTON 4 6 500 3 ANTICIPATED FORECAST DEMAND 800 1200 2000
Ashley’s Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to open a third plant and has narrowed the choice to one of two cities-New Orleans or Houston. The pertinent production and distribution costs, as well as the plant capacities and distribution demands, are shown in the table. from/to LA NY NORMAL PRODUCTION UNIT PRODUCTION ATLANTA 8 5 600 6 TULSA 4 7 900 5 NEW ORLEANS 5 6 500 4 ANTICIPATED HOUSTON 4 6 500 3 ANTICIPATED FORECAST DEMAND 800 1200 2000
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Ashley’s Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to open a third plant and has narrowed the choice to one of two cities-New Orleans or Houston. The pertinent production and distribution costs, as well as the plant capacities and distribution demands, are shown in the table.
from/to |
LA |
NY |
NORMAL PRODUCTION |
UNIT PRODUCTION |
||
ATLANTA |
8 |
5 |
600 |
6 |
||
TULSA |
4 |
7 |
900 |
5 |
||
NEW ORLEANS |
5 |
6 |
500 |
4 |
ANTICIPATED |
|
HOUSTON |
4 |
6 |
500 |
3 |
ANTICIPATED |
|
|
800 |
1200 |
2000 |
Which of the new possible plants should be opened?
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