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Porta-Putt, Inc. Porta-Putt, Inc., manufactures and distributes gasoline-powered outboard motors for boats, One of their three assembly plants, the St. Louis plant, is obsolete. The Los Angeles and Chicago assembly plants were recently renovated. Rather than continue peration in St. Louis, management is considering a new location forthe third plant. This is an opportune time, because in two years the new Denver distribution warchouse Till be opened. Since the new assembly plant could be the primary supplier of motors withe Denver warehouse, the new plant could be located to minimize shipping costs, shich are a substantial part of Porta-Putt’s operating costs. "two types of shipping costs are incurred at the St. Louis plant. First, raw materials and subcomponents arc shipped ftom Minneapolis and Seatdle to the St. Louis facility. Then, after final assembly, the St. Louis plant ships the finished motors Uathe Denver distribution warchouse. Figure 6.5 shows the locations of the three Teallities chat ship toot from the St. Louis facility. Table 6.5 summarizes the annual racer of loads shipped between St. Louis and each of the other three sites. The cost Of shipping a load is estimated to be 8.10/mile, Management would lke to ind a location that would minimize the potentially high annual transportation costs. Ar the sme time, however, there is some hesitation are cmoving away from metropolitan St, Louis, the original assembly plant established $e years ago. Porta-Putt’ experienced work force has survived many work methods and Sesembly line changes. From these refinements evolved an intricate assembly operation thar effeiently produced quality motors—until recently, when the plant became TABLE 6.5 Loads between the St. Louis plant and shipping facilities for Porta Putt Annual ‘Coordinate location (x, 9) Shipping Loads Between F; of F, Facility F and St, Louis (5,9) Denver 10,000 (1,000, $50) Seattle 8,000 (100, 1,100) Minneapolis 4,000 (1,600, 900)

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