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Author Question: A grocery chain is deciding on where to locate its new distribution centre. The new DC will serve ... (Read 78 times)

nevelica

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Question 1

A manufacturing company is considering three expansion options. The first is to do nothing (Option A). The next is to leave the current plant open and also open a new larger plant (Option B). Finally they could close the existing plant and open the new, larger one (Option C). Given the VC and FC from the table below calculate the range for which each option minimizes cost.

OptionFC ($)VC ($/unit)
A500002
B1000001
C600001.4


Question 2

A grocery chain is deciding on where to locate its new distribution centre. The new DC will serve four grocery stores, each with a demand of 10,000 units. If the coordinates of the stores are (112,108), (110,50), (40, 85), and (10, 25) where should the DC be located? Suppose now that each store instead had demand of 20,000 units. Where should the DC go in this case?


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Marked as best answer by nevelica on Dec 3, 2019

nmyers

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nevelica

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Reply 2 on: Dec 3, 2019
Excellent


vickyvicksss

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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