Discuss the below:
Managerial Decision Modeling with Speadsheet
Introduction to Management Science.
Q: Ashley's Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to open a third plant and has narrowed the choice to one of two cities-New Orleans or Houston. The pertinent production and distribution costs, as well as the plant capacities and distribution demands, are shown in the table.
|
from/to
|
LA
|
NY
|
NORMAL PRODUCTION
|
UNIT PRODUCTION
|
|
|
|
ATLANTA
|
8
|
5
|
600
|
6
|
|
|
|
TULSA
|
4
|
7
|
900
|
5
|
|
|
|
NEW ORLEANS
|
5
|
6
|
500
|
4
|
ANTICIPATED
|
|
HOUSTON
|
4
|
6
|
500
|
3
|
ANTICIPATED
|
|
FORECAST DEMAND
|
800
|
1200
|
2000
|
|
|
|
Which of the new possible plants should be opened?