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Four existing supermarkets

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Reference no: EM131314325

Sonny's Supermarket chain has decided to build its own warehouse. The local chain has four markets (A,B,C,D) with location and weekly demand listed in the table below.

a. If Sonny chooses the warehouse location to be adjacent to one of his four existing supermarkets, near which supermarket should he locate in order to minimize cost?

b. Sonny's brother Marcus has suggested that they locate the warehouse at a central location.  Calculate the coordinates of the best location, considering the volumes of demand at each supermarket.

c. Do you recommend that the warehouse be located at the first or second location? Why? Use numerical analysis to support your recommendation.

Remember to show your calculations in order to receive full credit!

Market

Coordinates

Demand

A

(32,18)

6

B

(12,48)

4

C

(30,20)

5

D

(27,24)

8

Reference no: EM131314325

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