Determine where should the solid-waste site by located

Reference no: EM13204647

A municipal solid-waste site for a city must be located at Site A or Site B. After sorting, some of the solid refuse will be transported to an electric power plant where it will be used as fuel. Data for the hauling of refuse from each site to the power plant are as follows:

Site A:
Average hauling distance: 4 miles
Annual rental fee for solid waste site: $5,000
Hauling cost: $1.50/yd?^3- mile
Site B:
Average hauling distance: 3 miles
Annual rental fee for solid waste site: $100,000
Hauling cost: $1.50/yd?^3- mile
If the power plant will pay $8.00 per cubic yard of sorted solid waste delivered to the plant, where should the solid-waste site by located? Use the city's viewpoint and assume that 200,000 cubic yards of refuse will be hauled to the plant for one year only. One site must be selected.

Reference no: EM13204647

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