Cool Air, a manufacturer of automotive air conditioners, currently produces its

Question

Cool Air, a manufacturer of automotive air conditioners, currently produces its XB-300 line at three different locations: Plant A, Plant B, and Plant C. Recently management decided to build all compressors, a major product component, in a separate dedicated facility, Plant D. Use the centroid method and the information displayed below to answer the following question. Determine the best location for Plant D Assumo a linear relationship between volumes shipped and shipping costs (no premium charges). (Round your answers to 1 docimal placo.)

Explanation / Answer

Cx= (8200*147+6200*99+6900*270) / (8200+6200+6900)= 3682200 / 21300=172.9

Cy= (8200*69+6200*308+6900*390) / (8200+6200+6900)=5166400 / 21300=242.6

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