Finding Optimal Location SCM/Ops Question

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.

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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 constraints.