Acme wants to locate a warehouse to serve their major customers that are shown in the table.What is the location that will minimize the transportation costs for their family of products?

Question

Quizplus · Accepted Answer

To find the location that would minimize transportation costs, we need to identify the centroid of the given coordinates. The centroid coordinates are the average of the x and y coordinates respectively. 
The centroid coordinates are (4.5, 4.83).
Therefore, the location nearest to (4.5, 4.83) is (4, 5) which is the best choice as it is closest to the centroid and will minimize transportation costs.

Acme Wants to Locate a Warehouse to Serve Their Major