A toy manufacturer wants to open a third shop

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Reference no: EM13547669

A toy manufacturer wants to open a third shop/warehouse that will supply three retail outlets. The new shop/warehouse can supply 500 units of backyard play-sets per week. Two locations are being studied, N1 and N2. Unit transportation costs for location N1 to stores A, B, and C are $6, $8, and $7, respectively; for location N2, the unit transportation costs are $10, $6, and $4, respectively. The existing network's data are shown in the following table. Which location would result in lower total transportation cost? Assume that unit production costs are the same in N1 and N2

Reference no: EM13547669

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