For each alternative new plant location, determine the shipping pattern that will minimize total transportation costs. Where should the new plant be located? PlantCapacity (Cases per Week)WarehouseDemand (Cases per Week)Chicago10,000Miami7,000Houston7,500Denver9,000New plant8,000Lincoln4,500 Total 25,500Jackson5,000 Total 25,500 Shipping Cost to Warehouse (per Case)PlantMiamiDenverLincolnJacksonChicago$7.00$2.00$4.00$5.00Houston$3.00$1.00$5.00$2.00Buffalo (alternative 1)$6.00$9.00$7.00$4.00Atlanta (alternative 2)$2.00 $10.00$8.00$3.00

Location strategy depicts the interaction organizations use to figure out where their workplaces and…

Answered: For each alternative new plant…

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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For each alternative new plant location, determine the shipping pattern that will minimize total transportation costs. Where should the new plant be located?

Plant	Capacity (Cases per Week)	Warehouse	Demand (Cases per Week)
Chicago	10,000	Miami	7,000
Houston	7,500	Denver	9,000
New plant	8,000	Lincoln	4,500
	Total 25,500	Jackson	5,000
			Total 25,500

	Shipping Cost to Warehouse (per Case)
Plant	Miami	Denver	Lincoln	Jackson
Chicago	$7.00	$2.00	$4.00	$5.00
Houston	$3.00	$1.00	$5.00	$2.00
Buffalo (alternative 1)	$6.00	$9.00	$7.00	$4.00
Atlanta (alternative 2)	$2.00	$10.00	$8.00	$3.00