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A branch company of a multinational industrial corporation has specialized on repairing boat engines and has operations ten different places along the Norwegian coast. These

A branch company of a multinational industrial corporation has specialized on repairing boat engines and has operations ten different places along the Norwegian coast. These have so far received their spare parts from the corporation's central stock in Germany, but now they are considering establishing two separate stocks for serving the Norwegian market. The distances, given in nautical miles, between the different places are shown in the table below, where the places are: (1) Stav, (2) sund, (3) Ber, (4) lesund, (5) Krist, (6) Trond, (7) Bo, (8) stad, (9) Tro, (10) Hammer.

1

2

3

4

5

6

7

8

9

10

1

0

32

102

260

322

409

649

766

840

959

2

32

0

70

228

290

377

617

734

808

927

3

102

70

0

167

229

316

556

673

747

869

4

260

228

167

0

63

150

390

507

581

700

5

322

290

229

63

0

91

331

448

522

641

6

409

377

316

150

91

0

302

419

493

612

7

649

617

556

390

331

302

0

120

194

313

8

766

734

673

507

448

419

120

0

81

200

9

840

808

747

581

522

493

194

81

0

119

10

959

927

869

700

641

612

313

200

119

0

  1. The company wants to locate the stock beside two of the existing production places such that the maximum distance from a production place to a stock is as small as possible.
    1. Formulate an LP-model for solving this problem. Define the objective function, variables and constraints, and explain the parameters used in the model.
  2. Implement the model and solve it by using Solver in Excel.

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