6. StayFresh, a manufacturer of refrigerators in India, has two plants -- one in Mumbai and the other in Chennai. Each plant has a capilcity of 300,000 units. The two plants serve the entire country, which is divided into four regional markets: the North, with a demand of 100,000 units; the West, with a demand of 150,000 units; the South, with a demand of 150,000 units; and the East, with a demand of 50,000 units. Two other potential sites for plants include Delhi and Kolkata. The variable production and transport costs (in thousands of rupees: 1 U.S. dollar is worth about 45 rupees) per refrigerator from each potential production site to each market are as shown in Table 5.12.StayFresh is anticipating a compounded growth in demand of 20 percent per year for the next five years and must plan its network investment decisions.
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United States dollar, Refrigerator, Rupee, StayFresh, network investment decisions