Using the load-distance model, the more cost effective city is to be determined. Concept Introduction: Plant location means to choice the particular region for setting up a business. Choosing a place for plant is most essential in order to get maximum profit. So it is very crucial to identify an ideal place, where all the capital are brought together for progress of business.

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Chapter 13, Problem 6P

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Interpretation: Using the load-distance model, the more cost effective city is to be determined.

Concept Introduction: Plant location means to choice the particular region for setting up a business. Choosing a place for plant is most essential in order to get maximum profit. So it is very crucial to identify an ideal place, where all the capital are brought together for progress of business.

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A personal computer manufacturer plans to locate its assembly 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 below to select the more cost effective city. (Round all intermediate calculations to two decimal places.) Port of Entry The cost of port at Los Angeles is $ The cost of port at San Francisco is $ Distance and Costs for PC Manufacturer Los Angeles Distance (miles) Shipping cost ($/unit) Distribution Center (units/year) Atlanta (8,250) Chicago (8,900) 1,800 0.0015/mile 2,600 0.0015/mile San Francisco Distance (Miles) Shipping cost ($/unit) (Enter your response rounded to the nearest whole number.) (Enter your response rounded to the…

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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