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Location Planning at A.B. Corp

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In March 2010, the management of A.B. Corp. announced its plan to select a definite location for its central warehouse. The company, a major producer of agriculture and farm equipment, had gone through three consecutive years of financial loss as a result of increasing production costs. Management had to select a central warehouse between four candidates, based on the location of five distribution centres, the loads to be transferred, and other factors such as land costs and tax.
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