A large retailer is planning to open a new store. Three locations in California

Question

A large retailer is planning to open a new store. Three locations in California are currently under consideration: South Coast Plaza (SCP), Fashion Island (FI), and Laguna Hills (LH). Transportation costs for the locations and costs, demands, and supplies for existing locations and warehouses (origins), are shown below. Each of the locations has a demand potential of 300 units per week. Which location would yield the lowest transportation costs for the system? Use the Minimum Cell Cost Heuristic. (Omit the "$" sign in your response.) TO From FI $7 6 LH $5 4 6 Warehouse SCP $4 2 5

Explanation / Answer

With the assumption that the original supply does not change:

So the allowable units from

1 - 160 units (660-500)

2 - 0 units (340-340)

3 - 140 units (200-60)

The costs are:

The actual description without any assumption:

So :

So best is SCP

A B LH 1 15 9 5 2 10 7 4 3 14 18 6 A B LH 1 0.0 500.0 0.0 500.0 <= 660 Supply constraints 2 340.0 0.0 0.0 340.0 <= 340 3 60.0 0.0 0.0 60.0 <= 200 Demand constraints 400.0 500.0 0.0 = = = 400 500 0

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