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Chicago is known for its unique take on the hot dog ( as seen in Figure 1 ) , and the family - owned regional
Chicago is known for its unique take on the hot dog as seen in Figure and the familyowned
regional chain Frankly Delicious has recently found its niche in the market. While it prides itself
on quality and fresh ingredients, the company has determined that transporting products from its
headquarters in downtown Chicago to its many restaurants in the northeastern region of Illinois
on a daily basis is becoming too costly As a result, the company has made the decision to open
regional warehouses to house products that it can then distribute to its retail locations. Each
warehouse will be based in one of the counties in which Frankly Delicious has restaurants and
will provide products for the operations in that county and all adjacent counties that are directly
accessible via a major roadway. It is possible for a county to be served by two or more warehouses,
in which case they will share operational responsibility.
Frankly Deliciouss management has chosen to partner with you to determine where to place its
warehouses, with the goal of minimizing the total amount it spends on the monthly operations of
the warehouses. Expenditures are dependent on the county in which the warehouse is located and
are based on land usage andor rent, the number of stores the warehouse would potentially serve,
salaries for warehouse employees, and other factors. A map of the region in which Frankly Delicious
operates and a table of counties, which includes information on county adjacency and associated
warehouse costs, are provided on the next page as Figure and Table respectively. Note that
some counties border each other but are not directly accessible via a major roadway. The table
indicates counties as adjacent if and only if they are accessible as such. In summary, you must
develop a linear programming model for this optimization problem, perform an appropriate analysis
using Excel, recommend the counties in which Frankly Delicious should place its warehouses, and
present a formal business report discussing your findings and conclusions.
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