Operation management Question : 2 hours

A single warehouse is needed to meet the demands of three markets (A, B, and C). The locations and demands of these three markets are provided in the table below. Distances are measured using rectilinear distance.

1. If the warehouse must be located at one of the three markets, which of the three locations is most desirable? Use quantitative analysis to support your recommendation.
2. If the facility were to be located at a point that is central to the three markets as defined by the center of gravity of the three markets and their corresponding demands, would that be a better location? Explain. (Round each coordinate of the center of gravity to one decimal place.)