ABC Company has plants of a product in Narayangonj, and Bogra. Its major distribution centers are located in Dhaka, Chittagong, Khulna and Rajshahi. Because of increasing sales the company is contemplating construction of a ...view middle of the document...
The new facility would have a supply capacity of 20000 units per week. Transportation costs from each potential location and existing locations are shown in the following table. Determine which location would the company select based on the transportation cost.
From Jessore to
Cost per unit
From Savar to
Cost per unit
Dhaka
Tk.20
Dhaka
Tk.7
Chittagong
32
Chittagong
18
Khulna
9
Khulna
20
Rajshahi
15
Rajshahi
22
Dhaka
Chittagong
Khulna
Rajshahi
Supply, units/week
Narayangonj
8
13
25
25
30000
Bogra
14
31
42
11
25000
Demand
Units/week
20000
18000
16000
14000