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3. Recall the problem in Question 2. Suppose that you started a distribution center at the location you decided in Question 2 with a supply
3. Recall the problem in Question 2. Suppose that you started a distribution center at the location you decided in Question 2 with a supply capacity of 65 shipments. However, the shipment requirements of the cities are increased as follows. As the total increase in the number of shipments is 70 , now you want to start a second distribution center with a capacity of 70 . There are two candidate locations. Candidate location Q; coordinates (6,6). The annual fixed cost of a distribution center in Q is $10,000. Candidate location X; coordinates (8,3). The annual fixed cost of a distribution center in X is $8,000. Transportation cost is computed as $1 per unit distance per shipment. For example, the distance between Q and G is 4 units; so, transportation cost from Q to G is $4/ shipment. Which location ( Q or X) provides a lower total cost? (Hint: Establish a transportation model for each option, and use the minimum cost heuristic to obtain a distribution plan)
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