Transportation Model Analysis

Results:

Through the use of the transportation model, we were able to determine the current total cost associated with the 12 distribution centers which also have bottling plants. The total cost is $403,700 for all 12. See Table 2 in the appendix.

Next, we analyzed six different cases and the associated total cost of adding a new plant to determine the most efficient location.

With the addition of a new plant in San Francisco, we determined the total cost to be $317,500, which is the lowest cost of the six potential locations. See Table 1 below for the total cost of adding a new plant in San Francisco.

Plant |AL |BA |BO |CH |CO |DA |DEN |DET |HO |IN |KC |LA |MI |MON |PO |RA |SP |SF |Capacity |Total | |Albuquerque |24 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |15 |0 |0 |0 |0 |0 |0 |250 |39 | |Baltimore |0 |62 |0 |0 |53 |0 |0 |30 |0 |0 |0 |0 |33 |42 |0 |12 |0 |0 |270 |232 | |Boston |0 |0 |64 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |79 |0 |0 |0 |0 |143 |143 | |Chicago |0 |0 |0 |182 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |182 |182 | |Dallas |0 |0 |0 |0 |0 |84 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |265 |84 | |Denver |0 |0 |0 |0 |0 |0 |51 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |183 |51 | |Detroit |0 |0 |0 |0 |0 |0 |0 |121 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |121 |121 | |Houston |0 |0 |0 |0 |0 |0 |0 |0 |123 |0 |0 |0 |0 |0 |0 |0 |0 |0 |265 |123 | |Kansas City |0 |0 |0 |116 |0 |0 |0 |0 |0 |74 |50 |0 |0 |0 |0 |0 |0 |0 |240 |240 | |Los Angeles |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |157 |0 |0 |0 |0 |0 |0 |157 |157 | |Portland |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |38 |0 |0 |0 |121 |38 | |St. Paul |0 |0 |0 |38 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |30 |0 |105 |68 | |San Francisco |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |0 |109 |0 |0 |0 |0 |0 |71 |180 |180 | |Demand |24 |62 |64 |336 |53 |84 |51 |151 |123 |74 |50 |281 |33 |121 |38 |12 |30 |71 | | | |total |24 |62 |64 |336 |53 |84 |51 |151 |123 |74 |50 |281 |33 |121 |38 |12 |30 |71 | | | |total cost |3175 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |...