Estimate location for minimizing annual transportation costs


Bubble Breweries has two distribution warehouses on Highway 70. Warehouse A, located at mile zero, receives 3,000 standard beer shipments annually from the brewery. Warehouse B, located at mile 1,200 receives 1,000 standard shipments annually from the brewery. For these shipment patterns, what would be the better brewery location for minimizing annual transportation costs to warehouses?

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Operation Management: Estimate location for minimizing annual transportation costs
Reference No:- TGS057723

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