From plants Existing plants Atlanta Tulsa Proposed locations New Orleans Houston Forecast demand To Distribution Centers Los Angeles $8 $4 $5 $4 800 New York $5 $7 $6 $6 1200 Production capacity 600 900 500 500 2000 Unit production cost $6 $5 $4 (anticipated) $3 (anticipated) Williams Auto Top Carriers has decided to open a third plant in one of the two cities - New Orleans and Houston. Based on the information below, which of the new location in combination with the existing plants and distribution centers, yields a lower cost for the firm? Find the total transportation cost, and the optimal product quantities for each routes.

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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From plants
Existing plants
Atlanta
Tulsa
Proposed locations
New Orleans
Houston
Forecast demand
To Distribution Centers
Los Angeles
$8
$4
$5
$4
800
New York
$5
$7
$6
$6
1200
Production capacity
600
900
500
500
2000
Unit production cost
$6
$5
$4 (anticipated)
$3 (anticipated)
Williams Auto Top Carriers has
decided to open a third plant in one
of the two cities - New Orleans and
Houston. Based on the information
below, which of the new location in
combination with the existing plants
and distribution centers, yields a
lower cost for the firm?
Find the total transportation cost,
and the optimal product quantities
for each routes.
Transcribed Image Text:From plants Existing plants Atlanta Tulsa Proposed locations New Orleans Houston Forecast demand To Distribution Centers Los Angeles $8 $4 $5 $4 800 New York $5 $7 $6 $6 1200 Production capacity 600 900 500 500 2000 Unit production cost $6 $5 $4 (anticipated) $3 (anticipated) Williams Auto Top Carriers has decided to open a third plant in one of the two cities - New Orleans and Houston. Based on the information below, which of the new location in combination with the existing plants and distribution centers, yields a lower cost for the firm? Find the total transportation cost, and the optimal product quantities for each routes.
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