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CMS Inc. is a large manufacturer of industrial parts and components based in Chicago, IL . The company distributes their products through a network of
CMS Inc. is a large manufacturer of industrial parts and components based in Chicago, IL The company distributes their products through a network of three warehouses located in Atlanta, GA; Charlotte, NC; and Jacksonville, FL The companys customer base includes original equipment manufacturers across Southeastern US The monthly demand aggregated by state is shown in the table below:
State Demand cases
AL
FL
GA
KY
NC
SC
TN
VA
Each warehouse can handle a limited number of cases per month. The warehouse capacities are listed below:
Atlanta, GA: cases
Charlotte, NC: cases
Jacksonville, FL: cases
It costs $mile to ship one case from the manufacturing plant to the warehouses. The distances in miles from the plant in Chicago, IL to the three warehouses are displayed in the following table:
Atlanta, GA Charlotte, NC Jacksonville, FL
Chicago, IL
Similarly, the company spends $mile to move one case of products from the warehouses to the different customers states. The distances in miles between the warehouses and states are shown in the table below:
AL FL GA KY NC SC TN VA
Atlanta, GA
Charlotte, NC
Jacksonville, FL
According to a distribution network optimization conducted years ago, all the demand from AL GA KY SC and TN is shipped from the warehouse located in Atlanta, GA The warehouse in Charlotte, NC currently serves NC and VA Finally, the warehouse in Jacksonville, FL only serves FL
Build the model, but don't run it yet. Based on the current customer allocation, what is the actual transportation cost inbound outbound costs
Round your answer to the nearest integer.
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