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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 U.S. The monthly demand aggregated by state is shown in the table below:
State Demand (cases)
AL 490
FL 1880
GA 1060
KY 467
NC 1049
SC 515
TN 685
VA 854
Each warehouse can handle a limited number of cases per month. The warehouse capacities are listed below:
Atlanta, GA: 3500 cases
Charlotte, NC: 3500 cases
Jacksonville, FL: 3500 cases
It costs 1.8 $/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 7177561100
Similarly, the company spends 6.7 $/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 1895095490304351280581
Charlotte, NC 4585242764405217481310
Jacksonville, FL 372141368746420238617656
According to a distribution network optimization conducted 5 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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