Steel Appliances, a
manufacturer of high quality refrigerators and cooking ranges, has one assembly
factory located near Denver from which it has supplied the entire United
States. Demand has grown, and Steel Appliances has decided to set up
another factory to serve its eastern markets. Three parts plants that
will supply the new assembly factory are located in Buffalo, New York, Memphis,
Tennessee, and St. Louis, Missouri. The new assembly factory will supply
markets in Atlanta, Boston, Jacksonville, Philadelphia, and New York.
(The new factory will supply all of the demand for these markets. That
is, the original factory near Denver will no longer supply these
markets.) The unit transportation costs, quantities shipped, and location
of the parts plants and markets are shown in the following table.
Formulate and solve an
Excel Solver model to determine the coordinates of the new assembly factory
that will minimize the transportation costs. Attach your Excel
spreadsheet document and make sure you include your solver solution and