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Amazon Inc. is considering opening warehouses in four cities: New York, Los Angeles, Chicago, and Atlanta. Each warehouse can ship 1 0 0 units per
Amazon Inc. is considering opening warehouses in four cities: New York, Los
Angeles, Chicago, and Atlanta. Each warehouse can ship units per week. The weekly fixed cost of
keeping each warehouse is $ for New York, $ for Los Angeles, $ for Chicago, and $ for Atlanta.
Region of the country requires units per week, region requires units per week, and region
requires units per week. The cost including production and shipping costs of sending one unit from a
warehouse to a region are shown in the following table.
Region Region Region
New York
Los Angeles
Chicago
Atlanta
Amazon wants to meet weekly demands at minimum cost, subject to the preceding information and the
following restrictions.
If the New York warehouse is opened, then the Los Angeles warehouse must be opened.
At most two warehouse can be opened.
Either the Atlanta or the Los Angeles warehouse must be opened.
Formulate an IP to help Amazon Inc. decide what warehouses to open. Clearly state your decision variables
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