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Problem:

Spearmint Gum Manufacturing is a manufacturer of recycled gum. Its products are enjoying a growing reputation and increased demand throughout North America because of its unique texture and natural flavors. Spearmint is considering a new plant in Alaska to service the entire state's home rule cities. A key concern in its search for a new location is the resultant transportation costs to serve its key markets. Following is a list of home rule cities where its main wholesale customers are located, along with estimated annual demand in cases of product for each.

City

X-Coordinate

Y-Coordinate

# Cases of Gum

Anchorage

1200

725

52,000

Fairbanks

800

450

28,000

Juneau

600

650

16,000

Sitka

300

320

14,000

Ketchikan

1400

900

8,000

Kenai

700

500

11,000

Kodiak

250

250

12,000

Palmer

675

400

7,000

Valdez

850

520

15,000

Petersburg

375

470

6,000

Seward

275

300

1,500

Wrangell

426

700

1,000

Cordova

350

125

875

North Pole

2300

1250

469

Nenana

470

180

3,000

Required:

Question 1) Use the centroid method to recommend a location for the new gum plant. Round your coordinates to one decimal place.

Spearmint Gum Manufacturing realizes that it may be too ambitious to service all Alaska's home rule cities so it decides to limit its geographic service area to include the following cities.

City

X-Coordinate

Y-Coordinate

# Cases of Gum

Anchorage

1200

725

52,000

Fairbanks

800

450

28,000

Juneau

600

650

16,000

Valdez

850

520

15,000

Sitka

300

320

14,000

Kodiak

250

250

12,000

Question 2) Use the centroid method to recommend a location for the new gum plant. Round your coordinates to one decimal place.

Solve the given numerical problem and illustrate step by step calculation.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91162250

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