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.
| CITY | x-COORDINATES | y-COORDINATES | NUMBER OF CASES |
| Phoenix | 270 | 270 | 22,500 |
| Tucson | 370 | 145 | 18,000 |
| Albuquerque | 820 | 470 | 26,000 |
| Santa Fe | 870 | 535 | 14,500 |
a. Use the centroid method to recommend a location
for the new bottling plant. (Round your answers to 1
decimal place.)
Cx=
Cy=
Answer: - According to given data
Formula to calculate cordinates = sum of ( cordinate*number of cases) / Total number of cases
For Cx = 270(22,500)+370(18,000)+820(26,000)+870(14,500) / 81,000 = 576.2
For Cy = 270(22,500)+145(18,000)+470(26,000)+535(14,500) / 81,000 = 353.9
So Cx = 576.2 and Cy = 353.9
Santa Cruz Bottling is a manufacturer of organic soft drinks on the coast of central California....
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