Captain Borders Corp. manufacturers fishing equipment. Currently, the Angeles an

Question

Captain Borders Corp. manufacturers fishing equipment. Currently, the Angeles and a plant in New Orleans. William Borders, the firm's owner, is deciding where to build a new plant Philadelphia or Seattle. Use the following table to find the total shipping costs for each potential site. Which should 3. company has a plant in Loe Borders select? Warehouse Plant Los Angeles New Orleans Philadelphia Seattle Demand Pittsburgh $100 S80 $40 $110 St. Louis $75 $60 $50 $70 Denver Capacity $50 $90 $90 $30 420 180 230 360 360 nd210 Click the icon to view the optimal solution with a new plant in Philadelphia. 2 Click the icon to view the optimal solution with a new plant in Seattle. Using the optimal solutions provided above, Borders should select (1) of S with a total cost (enter your response as a whole number) 1: More Info Warehouse Dummy Plant PittsburghSt. Louis DenverExcess) Capacity $100 $75 S0 Los Angeles 180

Explanation / Answer

To determine the site for the new plant, the total shipping cost is to be computed. The location with the least shipping cost is to be selected

Option1 : Philadelphia

Option 2: Seattle

Based on the above, we see that Borders should select Seattle, with a total cost of $40,050

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