Reference no: EM13966277
A manufacturer of gummi products (gummi bears, worms, mice, etc.) is planning to expand its production capabilities via a new factory. They are trying to choose amongst the following cities for it: Mt. Vernon, OH, and Mt. Vernon, IA. Currently, they only ship to their own warehouses which are located in Denver, CO, Boston, MA, and St. Louis, MO. Assume the cost of building the factory is the same in each potential location and that the costs of living and other important details are also the same.
Assuming that the factory will be shipping the same number of truckloads to each of the warehouses, where should the factory be located?
You are no longer restricted to the Mt. Vernon locations in which to place the factory. However, the factory will be shipping to the CO warehouse 4 truckloads each month, to the MA warehouse 3 truckloads each month, and to the MO warehouse 1 truckload each month. Keeping the assumption that the cost of building the factory is the same in each potential location and that the costs of living and other important details are also the same, where would you locate the factory?
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