Gotit Grocery Company is considering 3 locations for new distribution centers to serve it customers in 4
Question:
Gotit Grocery Company is considering 3 locations for new distribution centers to serve it customers in 4 nearby cities. The following table shows the fixed cost (in millions of dollars) of opening each potential center, the number (in thousands) of truckloads forecasted to be demanded at each city over the next 5 years, and the transportation cost (in millions of dollars)
per thousand truckloads moved from each center location to each city.
Center Fixed Cost City 1 2 3 4 1 200 6 5 9 3 2 400 4 3 5 6 3 225 5 8 2 4 Demand — 11 18 15 25 Gotit seeks a minimum cost distribution system assuming any distribution center can meet any or all demands.
(a) Formulate this problem as a facilities location ILP.
(b) Use class optimization software to solve your ILP.
Step by Step Answer: