Find the best location option

Reference no: EM131904067

Question: Triveni Steels (P) Ltd is planning to start a new factory formanufacturing steel utensils. It is considering three location options,namely Bokaro, Jamshedpur and Bhilai. The fixed costs at threelocations have been estimated at Rs 8.15million, Rs 7.377million andRs 7.903,million respectively. The variable costs at the three locationsare estimated at Rs 500 per unit, 580 per unit and 490 per unitrespectively. The factory will have an annual production capacity of10,000 steel utensils and in the initial years it will operate at 75%efficiency. Find the best location option, Which has the lowest totalcost of production.

Reference no: EM131904067

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