Question

Robbie Roberts, owner of CupAMoe's Coffee, is trying to determine where to locate his newest distribution warehouse. Robbie would like to locate the warehouse minimize transportation costs and provide the best overall delivery speed to his three markets. Consider the warehouse location decision facing CupaMoe's. Click the icon to view the the warehouse location. a. Suppose Robbie has learned that Capital City's population is expected to grow by just 5% over the next five years, while Springfield's population is expected to increase by 50,000 people over the same time period. Calculate the X and Y coordinates using this new information. The X coordinate is (Enter your response rounded to two decimal places.) The Y coordinate is (Enter your response rounded to two decimal places.) b. Now suppose Robbie has also learned that Capital City generates $800,000 in sales per year, while Springfield and Shelbyville both generate only $150,000 in sales each. Using sales dollars as the weights, recalculate the X and Y coordinates. The X" coordinate is (Enter your response rounded to two decimal places.) The Y* coordinate is (Enter your response rounded to two decimal places.) c. Which is a better weighting factor to consider: population or sales dollars?

Answer 1

Answers @ Total population Wa 400000 + 200000+ 110000 - 770000 Total xw = (400000X1)+(200000 x 4.5 )+(170000 x 4) = 400000 900000+680000 = 1980000. Total th = (400000 x 5) +(200000 x3) + (170000 x1) = 2000000 + 600000 170000 2770000 Now, EX; X Wi Ewi 1980000 770000 G = 2.57 Now Eyixwi Ewi

2770000 770 000 = 3.60 ogue = hos oix coordinale = 2.57 & y coordinate = 3,6 | Total sales w=800000 + 15000ot 15oooo 1100 000 Total xw = 800000 x 1 )+(15:0000 X 4.5)+(150000X4) 800000 +675000 + 600000 205000 Tolal yw = (800000 x 5 ) + (150000 x3) +(150000X1) - 4000000 450000 150000 = 4600000 Nocu 2075000 Cx = 1100000 x.=1.89

4600000 1100000 (y = 4.18 Distribution centre 1xcoordinate x ly coordinatiy salesw. 1 xw YW 800000 800000 4000000 capital city 675000 450000 | 150000 springfield | us | 3 150000 600000 150000 shelbyville IL 00000 2075000 4600000 Total 1.89 4.1% I six coordinate = 1.89 y coordinate = 4:18 ① sales dollar is better weighting factor as it will have a higher Correlation to the amount of product shipped to an arca than the general population index.