1. (BDI) supplies specialty mirrors that are sold in five different cities from three different factories. BDI needs to build new distribution center(s) to better serve the customers and minimize the transportation cost. The unit rate of transportation cost, annual shipments, and location coordinates for all of the existing facilities are given in the worksheet labeled Q1a and Q1b. BDI has not decided if building a single DC or two DCs is better for the company, given that the fixed location costs are unknown at this point. To help BDI with its decision, build two separate models determining the coordinates for the location(s) of the distribution center(s) and the corresponding flows through these distribution centers. For what level of fixed facility costs, would the two-DC model be better?

EF H Tons ftons shipped} Distance-Optimal Supply Points Ts/Ton Mile Cities F. K for) Three Rivers, MI 0.85 184000 Fort Wayne, IN 0.9 92000 Wheeling, WV 0.95 10000 Columbus, OH 125 70000 Ashland, KY 1.25 35000 Kingsport TN 1.75 19000 Akron OH 1.75 L10000 Roaneke, VA 1.5 152000 Coordinates , 12 16 12 12 1 154 4 10 6 12 Demand Points 155 14 Single DC location Optimal 19 Total Cost Coordinates Distance Distane Shipments Shipments OCA Supply Points $/Ton Mile Cities Three Rivers MI 0.85 Fort Wayne, IN 09 Wheeling, WV 0.85 Columbus, OH 1.25 Ashland, KY 1.25 Kingsport. IN 175 Akron OH 175 Roaneke, VA 1.5 Demand Points X. for D. frons shipped} 184000 92000 100000 70000 35000 9000 110000 152000 2 16 12 12 15 4 4 10 6 12 194 13 18 15 5 Tora! - SUM(124:J24) - SUM(125:J25) - SUM(126:J26) - SUM(127:J27) -SUM(128:J28) - SUM(129:J29) -SUM(130:J30) SUM(131J31) 33 Two DC locations DC DC2 = SUM(124:126) SUM(127:131) SUM(J24:J26) SUM(J27:331) 34 X 35 Y 37 Total Cost 39 Difference: EF H Tons ftons shipped} Distance-Optimal Supply Points Ts/Ton Mile Cities F. K for) Three Rivers, MI 0.85 184000 Fort Wayne, IN 0.9 92000 Wheeling, WV 0.95 10000 Columbus, OH 125 70000 Ashland, KY 1.25 35000 Kingsport TN 1.75 19000 Akron OH 1.75 L10000 Roaneke, VA 1.5 152000 Coordinates , 12 16 12 12 1 154 4 10 6 12 Demand Points 155 14 Single DC location Optimal 19 Total Cost Coordinates Distance Distane Shipments Shipments OCA Supply Points $/Ton Mile Cities Three Rivers MI 0.85 Fort Wayne, IN 09 Wheeling, WV 0.85 Columbus, OH 1.25 Ashland, KY 1.25 Kingsport. IN 175 Akron OH 175 Roaneke, VA 1.5 Demand Points X. for D. frons shipped} 184000 92000 100000 70000 35000 9000 110000 152000 2 16 12 12 15 4 4 10 6 12 194 13 18 15 5 Tora! - SUM(124:J24) - SUM(125:J25) - SUM(126:J26) - SUM(127:J27) -SUM(128:J28) - SUM(129:J29) -SUM(130:J30) SUM(131J31) 33 Two DC locations DC DC2 = SUM(124:126) SUM(127:131) SUM(J24:J26) SUM(J27:331) 34 X 35 Y 37 Total Cost 39 Difference