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A company is deciding where to locate a new warehouse that will receive shipments from three suppliers: 1, 3, and 3. The locations of the suppliers (xi, yi) and the annual number of shipments from supplier i (Wi) are provided below:
1 2 3
x1 = 250 x2= 100 x3= 500
y1 = 250 y2= 400 y3= 300
W1 = 240 W2=205 W3= 300
The coordinates for the new warehouse suggested by the center of gravity method are
Select one:
A. x = 193.2 and y = 219.4
B. x = 291.2 and y =198.9
C. x = 311.4 and y = 309.4
D. x = 309.4 and y = 311.4
Variable cost would increase to $.60, but volume should jump to 50,000 units due to a higher-quality product. Should the company buy the new equipment?
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