Answer all parts

As Amazon continues to expand in the Chicagoland area, they would like to open several new DCs. They have conducted an analysis of potential suburbs in which to locate these DCs, determining the monthly cost of operating the DC as well as the average cost to ship one unit from each location to other parts of the region.

Part 1

Which suburbs should they open in? What is the total cost?

Part 2

They find that they can reduce the operating cost of the Des Plaines DC by 10%. Does this change the answer? If so, how?

Part 3

Amazon has decided they dont need more than two new DCs. Where should they open these two? What is the total cost? Explain. (use the original values from part 1)

Monthy cost Capacity, to operate DC if open Potential DC Locations Joliet Bolingbrook Aurora Schaumburg Des Plaines Elgin Monthly demand Joliet $1.00 $3.50 $2.25 $4.00 $5.00 $3.00 15,000 Average cost per unit to ship to: Naperville Chicago Oak Park Wheaton Evanston $1.75 $6.00 $4.85 $3.20 $6.25 $2.15 $4.50 $3.75 $2.65 $5.15 $1.10 $4.75 $3.10 $1.95 $4.95 $2.35 $4.00 $2.95 $2.85 $4.05 $3.15 $3.75 $2.45 $3.10 $3.95 $1.65 $3.50 $2.35 $2.05 $5.05 22,000 50,000 28,000 19,000 35,000 $ 40,000.00 $ 56,000.00 $ 84,000.00 $ 102,000.00 $ 110,000.00 $ 95,000.00 75000 64000 63000 59000 82000 90000 Monthy cost Capacity, to operate DC if open Potential DC Locations Joliet Bolingbrook Aurora Schaumburg Des Plaines Elgin Monthly demand Joliet $1.00 $3.50 $2.25 $4.00 $5.00 $3.00 15,000 Average cost per unit to ship to: Naperville Chicago Oak Park Wheaton Evanston $1.75 $6.00 $4.85 $3.20 $6.25 $2.15 $4.50 $3.75 $2.65 $5.15 $1.10 $4.75 $3.10 $1.95 $4.95 $2.35 $4.00 $2.95 $2.85 $4.05 $3.15 $3.75 $2.45 $3.10 $3.95 $1.65 $3.50 $2.35 $2.05 $5.05 22,000 50,000 28,000 19,000 35,000 $ 40,000.00 $ 56,000.00 $ 84,000.00 $ 102,000.00 $ 110,000.00 $ 95,000.00 75000 64000 63000 59000 82000 90000