2. Pennock Pens Pennock Pens is a global leader in the design and manufacturing of pens. As they continue to grow their Chief Operating Officer Kathy Marvin, suggested that they adopt a greenfield approach to the distribution network needs. Her supply chain team has identified six potential regional warehouse locations: Atlanta GA. Erie PA. Lubbock TX, Burlington WI. Knoxville TN and Mesa AZ. The table below shows the fixed cost of opening each warehouse and their capacity. Fixed Cost Capacity Atlanta GA $2,700,000 175,000 Erie PA $2,900,000 125.000 Lubbock TX $2.200.000 150,000 Burlington WI $3,300,000 175,000 Knoxville TN $2.000.000 100,000 Mesa AZ $1,800,000 150,000 Her team also determined the cost of shipping from the six potential warehouses to Pennock's fourteen geographic sales regions and the demand in each of those regions, which is shown in the following table. Erie PA Mesa AZ Demand South Southeast Mid-Atlantic Northeast Mideast Midwest Northern Plains Central Plains Southern Plains Northern Rockies Southern Rockies Southwest Northwest Pacific Coast Atlanta GA $13 $16 $25 $19 $16 $14 $28 $21 $25 $22 $27 $21 $26 $24 $27 $29 $15 $20 $24 $25 $24 $20 $17 $18 $18 $24 $22 $23 Lubbock TX $24 $25 $21 $19 $23 $22 $22 $16 $19 $17 $21 $19 $20 $19 Burlington WI $31 $32 $20 $24 $29 $29 $22 $22 $19 $21 $17 $25 $20 $23 Knoxville TN $29 $32 $28 $25 $25 $28 $35 $28 $29 $28 $32 $31 $33 $32 $31 $29 $32 $29 $33 $30 $26 $26 $29 $28 $30 $23 $25 $23 39,000 24,000 60,000 65,000 33,000 34.000 7,000 35.000 50,000 15,000 37,000 45,000 68,000 77.000 Ms. Marvin needs to know what regional warehouses to open to minimize total cost. 2. Pennock Pens Pennock Pens is a global leader in the design and manufacturing of pens. As they continue to grow their Chief Operating Officer Kathy Marvin, suggested that they adopt a greenfield approach to the distribution network needs. Her supply chain team has identified six potential regional warehouse locations: Atlanta GA. Erie PA. Lubbock TX, Burlington WI. Knoxville TN and Mesa AZ. The table below shows the fixed cost of opening each warehouse and their capacity. Fixed Cost Capacity Atlanta GA $2,700,000 175,000 Erie PA $2,900,000 125.000 Lubbock TX $2.200.000 150,000 Burlington WI $3,300,000 175,000 Knoxville TN $2.000.000 100,000 Mesa AZ $1,800,000 150,000 Her team also determined the cost of shipping from the six potential warehouses to Pennock's fourteen geographic sales regions and the demand in each of those regions, which is shown in the following table. Erie PA Mesa AZ Demand South Southeast Mid-Atlantic Northeast Mideast Midwest Northern Plains Central Plains Southern Plains Northern Rockies Southern Rockies Southwest Northwest Pacific Coast Atlanta GA $13 $16 $25 $19 $16 $14 $28 $21 $25 $22 $27 $21 $26 $24 $27 $29 $15 $20 $24 $25 $24 $20 $17 $18 $18 $24 $22 $23 Lubbock TX $24 $25 $21 $19 $23 $22 $22 $16 $19 $17 $21 $19 $20 $19 Burlington WI $31 $32 $20 $24 $29 $29 $22 $22 $19 $21 $17 $25 $20 $23 Knoxville TN $29 $32 $28 $25 $25 $28 $35 $28 $29 $28 $32 $31 $33 $32 $31 $29 $32 $29 $33 $30 $26 $26 $29 $28 $30 $23 $25 $23 39,000 24,000 60,000 65,000 33,000 34.000 7,000 35.000 50,000 15,000 37,000 45,000 68,000 77.000 Ms. Marvin needs to know what regional warehouses to open to minimize total cost