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Steel Appliances (SA), a manufacturer of high quality refrigerators and stoves.

SA has a p Steel Appliances


(SA) has decided to set up two factories to serve its east coast markets. L located in Buffalo, Memphis and
St. Louis will provide parts to the new factories. One will address the m in each market, the required supply
of each parts plant and the shipping cost of each to Buffalo, one from Memphis and two from St. Louis.

Sources/Markets Transportation cost Market supply and Coord


$/Tn demand capacity Xn
buffalo $ 0.90 200
Supply Sources Memphis $ 0.95 300
saint Louis $ 0.90 650
atlanta $ 1.50 330 650
Boston $ 1.50 175 900
Markets Jacksonville $ 1.50 260 900
Philadelphia $ 1.50 180 1100
NY $ 1.50 350 1150
assembly
has grownplant located
rapidly and near Denver, from which it has supplied the entire United States. The lawsuit asked the
supply
. Three chain
plantsmanager to find a suitable location for the new factories in Atlanta and Jacksonville and the other
of location
markets
parts, theindemand
Boston, Philadelphia and New York. The supply or market coordinates are shown in the table. A
product
consists demanded
of a part of by any market is c

O Proposed location 1
O Proposed location 2
o Location Sources of Supply
O Location Markets

00 1000 1100 1200 100 200 300 400 500 600 700 800 9
FLOOR 1
Rectilinear Distance
x=
y=
Cost =

P.L.
Straight
Distance
x=
y=
Cost =

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