Problem

Goutte is a Canadian soft drink manufacturing and distribution company. Recently, the firm has achieved an unexpected increase in sales, due to mainly to the launch of a new drink that has become very popular with young consumers.

The administration is now considering the possibility of opening a new plant so that part of the production of the other Factories can be moved. The production process makes use of water available anywhere in Canada in an unlimited amount at a negligible cost, and sugar extracts, which they make up a modest percentage of the total weight of the finished product.

For this reason, the supply costs are insignificant compared to the distribution costs of finished products, and transport costs are independent of the product.

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