Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California. Its products are enjoying a growing 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 the 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.
a. Use the centroid method to recommend a location for the new bottling plant. Round your coordinates to one decimal place. b. Do you have any concerns about the result? How would you deal with them?
City x-coordinate y-coordinate Number of cases 25,000 20,000 Phoenix 250 250 Tucson 350 125 Albuquerque Santa Fe 800 450 28,000 17,000 850 520