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Question 1: A toy manufacturer wants to open a third warehouse that will supply three retail outlets. The new warehouse will supply 500 units of backyard playsets per week. Two locations are being studied. NI and N2. Transportation costs for location NI to stores A. B. and C are 56.58. and 57 per unit respectively: for location N2. the costs are 510.56. and 54. respectively. The existing system is shown in the following table. Which location would result in the lower transportation costs for the system?
Question 2: A large firm is contemplating construction of a new manufacturing facility. The two leading locations are Toledo and Cincinnati. The new factory would have a supply capacity of 160 units per week. Transportation costs from each potential loca ion and existing locations are shown in the following table. Determine which location would provide the lower transportation costs.
From
Cost
Toledo to
per Veit
Cieciemati to
per Unit
A
SIB
S7
B
17
C
13
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