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Business, 20.08.2021 02:20 norsenorma

Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its products are enjoying reputation and increased demand throughout the American Southwest. Because of the high cost of transporting soft drinks, it is considering a new plant to serve states of New Mexico and Arizona. A key concern in its search for a new location is the resultant transportation costs to serve its key markets. Following is a list of cities where its main wholesale customers are located, along with estimated annual demand in cases of product for each. City x-coordinate y-coordinate Number of Cases
Phoenix 250 250 25,000
Tucson 350 125 20,000
Albuquerque 800 450 28,000
Santa Fe 850 520 17,000
a. Use the centroid method to recommend a location for the new bottling plant.
b. Do you have any concerns about the result? How would you deal with them?

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