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A Hardware Distributor Has Regional Warehouses at the Locations Shown

question 57

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A hardware distributor has regional warehouses at the locations shown below. The company wants to locate a new central distribution center to serve this warehouse network.  Location (x,y) A2,3 B3,7C5,5D7,3E8,7\begin{array} { c c } \text { Location } & ( \mathrm { x } , \mathrm { y } ) \\\hline \mathrm { A } & 2,3 \\\mathrm {~B} & 3,7 \\\mathrm { C } & 5,5 \\\mathrm { D } & 7,3 \\\mathrm { E } & 8,7\end{array}
If weekly shipments to each warehouse will be approximately equal, what is the optimal location for the distribution center?

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Definitions:

Overapplied

A situation in cost accounting where the allocated overhead costs exceed the actual overhead costs.

Finished Goods Inventory

The stock of completed products that are ready to be sold.

Underapplied

Describes the situation where the allocated manufacturing overhead is less than the actual manufacturing overhead incurred.

Overapplied

A situation in which the allocated manufacturing overhead cost is more than the actual overhead cost incurred.

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