Gce Model Questions Vol1 2024 Geography Question 44

A processing plant can be located at one of three towns: X, Y or Z. A mine supplies raw material from point M. Distances (km) are: - M to X: 120; M to Y: 80; M to Z: 150. - From each town to markets A, B, C: | | A | B | C | |----------|---|---|---| | X | 200 | 150 | 250 | | Y | 180 | 120 | 220 | | Z | 160 | 140 | 200 | Transport cost is £0.05 per tonne‑km. Production cost is £30 per tonne, the same at any location. Annual demand: A 2000 t, B 1500 t, C 2500 t (total 6000 t). Fixed annual plant costs are: X £500,000; Y £400,000; Z £450,000. Assuming all raw material (6000 t) is transported from M to the plant and the finished product is then shipped to each market, which town should be chosen for the plant to minimise total annual cost? State the optimal location.