An agro-chemicals firm is considering expanding the production of two of its major pesticides in powder form. It feels that the markets are located in the north west south-east parts of the country. The bulk of the products consists of filler material, which has to be transported for over 700 km. to the present plant site. The company has located two sites - one in the north other one in the south for possible expansion. Both the sites are near the deposits of the filler material, soapstone. The company's problem is to decide (a) whether an expansion is necessary, (b) if so, should it be at the present site or at one of the two alternative sites? Demand estimates for the products on the basis of data provided for cropping patterns and pest attacks can be attempted, the feasibility of expansion can be determined on the basis of relevant cost and profit margin data.