A Company Currently Has Two Factories: F1 and F2,and Three

Essay

A company currently has two factories: F1 and F2,and three retail outlets: R1,R2,and R3.The shipping costs per unit along with the monthly capacity and demand requirements are summarized below:
$\begin{array}{l}\text { Shipping Cost Per Unit }\\\begin{array}{lllll}& \mathrm{R} 1 & \mathrm{R} 2& \mathrm{R} 3&\text { Supply } \\\text { F1 } &\$3&\$2&\$4&100\\\text { F2 } & \$ 1 & \$ 3 &\$5&200 \\\text { Demand } & 100 & 100 & 200 &\end{array}\end{array}$
The firm has decided to build a new factory to expand its productive capacity.The two sites being considered are Philadelphia and Pittsburgh.The estimated shipping costs for the new factories along with their estimated fixed cost and production capacity are summarized below:

Which of the new locations will yield the lowest cost in combination with the existing factories and retail outlets?