Distribution Center Location Help

Distribution Center Location help

A company produces its most popular model of lawn tractor in its St. Louis, Greenwood and Camarillo plants and ships these units to major distribution centers in Atlanta, Chicago and San Diego. To support its growing presence in the Pacific Rim, The Company is considering adding two distribution centers. Locations being considered are Taiwan; Singapore; Sydney, Australia; and Auckland, New Zealand. They anticipates locating distribution centers in two of these new locations. Data acquired from accounting, marketing and production are shown below. Total demand in the Pacific Rim is expected to be 5,000 units.  Develop an appropriate optimization model to identify the best location for the new DCs and transportation allocations to meet demand

Plant Atlanta Chicago San Diego Taiwan Singapore Sydney Auckland Capacity
St. Louis $35 $40 $60 $130 $120 $148 $145 12,000
Greenwood $30 $30 $45 $136 $130 $160 $170 8,000
Camarillo $60 $65 $50 $115 $100 $120 $170 7,500
Demand 9,000 3,000 9,500

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