A Producer of Action Figures Is in a Quandary About

question 51

Essay

A producer of action figures is in a quandary about where to locate a central warehouse that will serve all of their regional centers for the coming millennium. They have predicted average annual demands for the following locations in the table.
$$\begin{array} { | l | c | c | c | } \hline { \text { Location } } & \text { Demand } & \text { X-Coordinate } & \text { Y-Coordinate } \\\hline \text { Gotham City } & 200 & 9 & 8 \\\hline \text { Metropolis } & 500 & 7 & 5 \\\hline \text { Central City } & 800 & 5 & 5 \\\hline \text { Gateway City } & 600 & 0 & 5 \\\hline \text { Capitol City } & 150 & 8 & 6 \\\hline\end{array}$$ Where should they locate their central warehouse?

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Definitions:

Direct Labor-hours

The total hours worked directly on the production of goods.

Merchandise Purchases Budget

A detailed plan used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.

Required Purchases

The quantity of goods a company needs to buy to meet its production plans and sales forecast.

Selling And Administrative Expense Budget

A detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.