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4 ) Zippy City Bikes is planning to place collection & charging ( C&C ) centers for its electric bikes in five neighborhoods of Cleveland,

4) Zippy City Bikes is planning to place collection & charging (C&C) centers for its electric bikes in five neighborhoods of Cleveland, Ohio: (1) Ohio City, (2) Gordon Square, (3) Downtown, (4) Lakewood, and (5) Tremont. The firm would also like these charging stations to be close to the three areas that customers frequently travel: (X) Edgewater Park, (Y) Rock & Roll Hall of Fame, and (Z) West Side Market. At the end of each day, Zippy City Bikes needs to pick up the bikes from the three areas of interestEdgewater, Rock & Roll Hall of Fame, and West Side Marketand transfer them to the C&Cs. The per-unit cost of transferring bikes from the areas of interest to the C&C are given in the below table. For example, the firm incurs a per bike cost of $35 when a bike is transferred from Edgewater Park to Ohio City.
Net cost per bike from Area of Interest X
Region X Y Z
1353545
2453045
3706050
4204525
5654545
The firm predicts 40,25, and 35 bikes to be left at the three areas of interest at the end of the day, respectively. The firm would also like to decide which C&C center(s) to open. The maximum number of bikes that can be placed in each C & C center and the associated construction costs are:
C&C Center C & C Center Capacity Construction Cost($)
125 $13,250
225 $11,000
325 $15,000
425 $12,000
525 $14,000
The firm would like to find which C&Cs to open and a minimum cost plan to transfer the bikes from areas of interest to C&Cs.
a. Write the mathematical formulation.
b. Solve using excel solver.Net Cost Per Unit
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