Problem:
The transportation model attempts to find the lowest cost means of shipping from several origins to several destinations. Assume that you are the manager of a multinational manufacturing organization. You have production plants in the United States and Germany. Product A is made in the United States and Product B is made in Germany. Product C is made in both these locations. You currently have distribution centers that ship products to customers in the United States as well as Germany. You want to expand your distribution network by adding a distribution center in Asia.
What are some of the factors you need to consider in determining a location? What are the possible pitfalls that should be avoided when deciding on a location? How would you decide the production plant to ship Product C from?