Consider a firm that is introducing a new product. The firm identified 300 potential customers whose probability of purchasing the product depends on age and gender as follows:

Female Under 60	Probability
Buy	0.6
Not	0.4

Female Over 60	Probability
Buy	0.4
Not	0.6

Male Under 60	Probability
Buy	0.55
Not	0.45

Male Over 60	Probability
Buy	0.45
Not	0.55

The firm has 4 warehouses from which the products can be shipped: Dallas, TX, Cleveland, OH, Phoenix, AZ, and San Francisco, CA. Currently, there are 100, 150, 100, and 110 units of the new product stored in these four warehouses, respectively. What is the least costly way of satisfying the demand of the 300 customers from these four warehouses? (The cost of shipping is $0.01 per mile.) Remember that demand values are estimates. Explain how changes in the demand values impact your solution or costs.

Edit Developer Number Font Format Cells Fill - Calibri (Body Alignment abc - 12 AA Wrap Text General . Normal 2 Normal Bad Paste Clear B I U A- Merge % ,00 .00 Conditional Formatting Good Neutral Calculation Insert Delete N3 A x x B Gender Age D E H 1 L O P Q R Location Age G Buy (1) or not(0)? S Location Customer Gender Age N Buy (1) or not(0)? Location Customer # Gender Age Buy (1) or not(0)2 48 M M M M 44 Age Character 600 600 600 600 Chicago New York New York New York New York New York New York 48 600 M M F M F M F M M F M Chicago 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 M Customer # 1 2 1 3 2 4 3 5 4 6 5 7 6 8 7 9 9 10 9 11 10 12 11 13 12 14 13 15 14 16 15 17 16 18 17 19 18 20 19 21 20 22 21 23 22 24 23 25 24 26 25 27 26 28 27 29 28 30 29 31 30 32 31 33 32 34 33 35 34 36 35 37 36 38 37 39 38 40 39 41 40 42 41 43 42 44 43 45 46 45 32 89 60 40 34 46 61 20 28 98 40 32 46 14 75 84 31 39 87 61 77 31 73 15 14 82 98 20 25 83 M F M M M F M M M F M M M F M M M M M M F M F M M M M M M M F M M M M M F M M F M 107 New York New York New York New York New York Chicago New York New York New York New York Chicago New York Los Angeles New York New York Chicago New York Seattle Chicago Chicago Seattle New York Chicago New York Seattle New York New York New York New York Chicago New York New York New York Chicago New York New York Chicago Chicago New York Los Angeles New York Chicago New York New York New York Character 600 60U 60L 600 600 600 600 60U 600 600 60U 600 600 600 60U 60U 600 600 60U 60U 600 600 60U 600 600 600 SOU 600 600 600 600 600 60U 600 600 600 600 600 600 600 60L 600 600 600 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 90 81 82 82 B4 85 86 87 88 89 90 M M M M M M M M M M F M M M M M M M F M M F M M F F M M M M M M F M M F M M M M M M F. M 38 39 21 65 29 92 67 99 25 31 74 92 91 62 24 49 19 58 59 64 90 80 61 39 79 74 44 38 16 62 65 86 42 64 23 New York Los Angeles New York Los Angeles New York New York New York New York New York New York New York Chicago New York New Yor! New York Los Angeles New York New York New York Chicago New York Chicago Los Angeles Chicago M Age Character da 600 600 600 600 GOU 600 GOU 60U 600 600 600 600 600 600 GOU 600 500 600 600 600 600 60U 50U GOU 600 60U GOU 500 600 600 600 600 60U 600 600 600 GOU 600 GOL 600 GOU 600 GOU 99 50 70 23 80 95 28 23 77 93 68 77 44 33 77 72 75 67 36 56 94 34 57 58 41 59 65 New York Los Angeles Los Angeles Los Angeles New York New York New York New York New York New York Chicago New York New York Chicago New York Los Angeles New York New York New York New York New York Los Angeles New York Los Angeles New York Los Angeles New York New York New York New York Chicago New York New York New York Los Angeles Los Angeles Chicago Los Angeles 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 M F M F F M M F M M M M M M M M M F M M M M F F M M F M M M F M F 600 GOU 600 600 600 600 600 600 600 600 600 GOL 500 600 600 500 GOU 600 600 600 600 600 EOU 600 600 60U GOU 600 600 600 501 600 GOU 600 600 600 600 GOU 600 600 44 78 124 27 99 44 84 27 90 55 62 99 60 56 71 55 89 85 73 22 93 125 126 127 128 129 130 131 132 133 134 135 New York New York New York New York New York New York Chicago New York New York Chicago New York Seattle New York New York Los Angeles New York New York New York New York New York 97 30 89 22 99 65 86 45 97 95 85 99 70 68 Part 1 + Ready M 14 Sum-0 Normal View Fill Calibri (Body) - 12 -A- A- Forma abc Wrap Text General Normal 2 Normal Bad Paste Clear BI U 0 2 Merge - % 4.0 .00 Conditional Formatting Good Neutral Calculation LE CE Insert AR2 4 Delete X fx V w Y Z AC AD AE AF AG AJ AK AL Customer # AM Gender AB Buy (1) or not(0)? AN Age 1 Location Customer # Gender Age Location Buy (1) or not(0]? Customer Gender Age Location AP Buy (1) or notoj? F 3 181 182 183 184 185 AO Age Character 60U GOU 600 UI 5 EOU 186 95 12 90 55 91 29 72 34 26 52 65 53 81 23 56 54 54 22 30 0 1 2 3 New York New York New York Chicago New York Los Angeles New York Los Angeles New York New York New York New York New York New York New York New York New York New York New York M M F M M M M M M M M M F 5 6 7 8 F 9 M M M M M M M 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 0 1 2 3 4 5 6 7 New York M M M M F M M M M F F M M M M M M M M M F M M F M F F M F M M M M M F M M F M M M F M AA Age Character GOU 600 600 600 600 600 600 600 600 600 600 600 60U 600 600 600 600 600 600 600 600 60U 600 60U 600 600 600 600 600 60U 600 600 600 600 600 600 600 600 600 600 600 600 600 600 60U M M M M F F M M M M M F . F M M M M M M M M M M M M F M F F F M 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 206 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 94 14 85 48 83 76 32 28 70 57 86 75 21 89 81 16 63 73 97 86 88 99 95 18 81 29 38 68 90 66 34 32 79 92 85 72 47 21 12 25 51 89 45 74 40 29 36 17 95 75 55 19 53 54 73 26 38 98 24 71 20 77 M AH Age Character 600 600 60U 600 60U 600 600 600 600 600 60U 600 600 600 600 600 60U 60U 60U 600 600 600 600 600 60U 600 60U 600 600 600 600 60L BOL 600 600 600 600 600 600 600 600 600 GOU 600 New York New York Los Angeles New York Seattle Chicago Seattle New York Chicago New York New York New York New York New York New York Los Angeles New York Chicago New York Los Angeles New York New York New York Los Angeles New York New York Los Angeles New York New York New York New York Seattle New York Chicago Seattle New York Chicago Chicago New Yor! New York Chicago Los Angeles New York New York New York 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 245 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 65 38 71 35 97 97 61 19 67 12 96 88 54 38 100 97 13 37 31 37 36 79 57 67 43 29 50 89 37 98 30 20 84 42 New York New York New York Chicago New York New York Chicago New York Los Angeles New York New York New York New York New York New York New York New York New York Chicago New York New York Los Angeles New York New York Los Angeles Chicago New York New York New York New York New York New York New York Los Angeles Los Angeles Chicago New York New York Chicago Los Angeles New York Chicago New York New York New York Los Angeles New York New York New York New York New York New York New York New York Chicago New York New York New York Chicago Chicago New York New York New York New York New York New York Los Angeles New York New York New York 8 600 600 60L 600 600 600 600 60U 600 600 600 600 604 600 600 600 600 600 600 600 60L 600 600 600 GOU 600 600 600 600 604 600 600 600 600 EU 600 600 600 600 O 1 2 3 4 5 6 7 8 M M M M F F. M M M F M M M M M F F 0 1 2 3 4 5 6 265 M M M M M M M M M M M M 83 42 30 66 22 23 13 45 87 + M F F M F 266 267 268 269 270 85 41 89 87 25 14 38 87 67 34 60U 600 GOL Part 1 Normal View Ready Sum=0 Fill Calibri (Body) 12 AA- abc Wra U Clear A Paste AZ11 AR fx AT AS AU AX AY AW Buy (1) or not(0)? Customer # Gender Location Age 1 2 3 M M F 4 5 M F M M F M M M 73 58 72 54 86 35 21 59 64 36 36 41 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 F M M M M M M M M 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Los Angeles New York Los Angeles New York Los Angeles New York New York New York New York Los Angeles New York Los Angeles New York Chicago Los Angeles Los Angeles New York New York Los Angeles New York New York Los Angeles Los Angeles New York Seattle New York New York New York New York Seattle 46 30 34 100 87 34 16 57 39 85 61 57 54 84 88 77 36 20 F AV Age Character 60U 600 60U 600 60U 600 600 600 60U 600 600 600 600 600 600 60U 600 600 600 600 600 60U 60U 600 600 60U 60U 60U 600 600 M M M M M M F M F Edit Developer Number Font Format Cells Fill - Calibri (Body Alignment abc - 12 AA Wrap Text General . Normal 2 Normal Bad Paste Clear B I U A- Merge % ,00 .00 Conditional Formatting Good Neutral Calculation Insert Delete N3 A x x B Gender Age D E H 1 L O P Q R Location Age G Buy (1) or not(0)? S Location Customer Gender Age N Buy (1) or not(0)? Location Customer # Gender Age Buy (1) or not(0)2 48 M M M M 44 Age Character 600 600 600 600 Chicago New York New York New York New York New York New York 48 600 M M F M F M F M M F M Chicago 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 M Customer # 1 2 1 3 2 4 3 5 4 6 5 7 6 8 7 9 9 10 9 11 10 12 11 13 12 14 13 15 14 16 15 17 16 18 17 19 18 20 19 21 20 22 21 23 22 24 23 25 24 26 25 27 26 28 27 29 28 30 29 31 30 32 31 33 32 34 33 35 34 36 35 37 36 38 37 39 38 40 39 41 40 42 41 43 42 44 43 45 46 45 32 89 60 40 34 46 61 20 28 98 40 32 46 14 75 84 31 39 87 61 77 31 73 15 14 82 98 20 25 83 M F M M M F M M M F M M M F M M M M M M F M F M M M M M M M F M M M M M F M M F M 107 New York New York New York New York New York Chicago New York New York New York New York Chicago New York Los Angeles New York New York Chicago New York Seattle Chicago Chicago Seattle New York Chicago New York Seattle New York New York New York New York Chicago New York New York New York Chicago New York New York Chicago Chicago New York Los Angeles New York Chicago New York New York New York Character 600 60U 60L 600 600 600 600 60U 600 600 60U 600 600 600 60U 60U 600 600 60U 60U 600 600 60U 600 600 600 SOU 600 600 600 600 600 60U 600 600 600 600 600 600 600 60L 600 600 600 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 90 81 82 82 B4 85 86 87 88 89 90 M M M M M M M M M M F M M M M M M M F M M F M M F F M M M M M M F M M F M M M M M M F. M 38 39 21 65 29 92 67 99 25 31 74 92 91 62 24 49 19 58 59 64 90 80 61 39 79 74 44 38 16 62 65 86 42 64 23 New York Los Angeles New York Los Angeles New York New York New York New York New York New York New York Chicago New York New Yor! New York Los Angeles New York New York New York Chicago New York Chicago Los Angeles Chicago M Age Character da 600 600 600 600 GOU 600 GOU 60U 600 600 600 600 600 600 GOU 600 500 600 600 600 600 60U 50U GOU 600 60U GOU 500 600 600 600 600 60U 600 600 600 GOU 600 GOL 600 GOU 600 GOU 99 50 70 23 80 95 28 23 77 93 68 77 44 33 77 72 75 67 36 56 94 34 57 58 41 59 65 New York Los Angeles Los Angeles Los Angeles New York New York New York New York New York New York Chicago New York New York Chicago New York Los Angeles New York New York New York New York New York Los Angeles New York Los Angeles New York Los Angeles New York New York New York New York Chicago New York New York New York Los Angeles Los Angeles Chicago Los Angeles 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 M F M F F M M F M M M M M M M M M F M M M M F F M M F M M M F M F 600 GOU 600 600 600 600 600 600 600 600 600 GOL 500 600 600 500 GOU 600 600 600 600 600 EOU 600 600 60U GOU 600 600 600 501 600 GOU 600 600 600 600 GOU 600 600 44 78 124 27 99 44 84 27 90 55 62 99 60 56 71 55 89 85 73 22 93 125 126 127 128 129 130 131 132 133 134 135 New York New York New York New York New York New York Chicago New York New York Chicago New York Seattle New York New York Los Angeles New York New York New York New York New York 97 30 89 22 99 65 86 45 97 95 85 99 70 68 Part 1 + Ready M 14 Sum-0 Normal View Fill Calibri (Body) - 12 -A- A- Forma abc Wrap Text General Normal 2 Normal Bad Paste Clear BI U 0 2 Merge - % 4.0 .00 Conditional Formatting Good Neutral Calculation LE CE Insert AR2 4 Delete X fx V w Y Z AC AD AE AF AG AJ AK AL Customer # AM Gender AB Buy (1) or not(0)? AN Age 1 Location Customer # Gender Age Location Buy (1) or not(0]? Customer Gender Age Location AP Buy (1) or notoj? F 3 181 182 183 184 185 AO Age Character 60U GOU 600 UI 5 EOU 186 95 12 90 55 91 29 72 34 26 52 65 53 81 23 56 54 54 22 30 0 1 2 3 New York New York New York Chicago New York Los Angeles New York Los Angeles New York New York New York New York New York New York New York New York New York New York New York M M F M M M M M M M M M F 5 6 7 8 F 9 M M M M M M M 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 0 1 2 3 4 5 6 7 New York M M M M F M M M M F F M M M M M M M M M F M M F M F F M F M M M M M F M M F M M M F M AA Age Character GOU 600 600 600 600 600 600 600 600 600 600 600 60U 600 600 600 600 600 600 600 600 60U 600 60U 600 600 600 600 600 60U 600 600 600 600 600 600 600 600 600 600 600 600 600 600 60U M M M M F F M M M M M F . F M M M M M M M M M M M M F M F F F M 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 206 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 94 14 85 48 83 76 32 28 70 57 86 75 21 89 81 16 63 73 97 86 88 99 95 18 81 29 38 68 90 66 34 32 79 92 85 72 47 21 12 25 51 89 45 74 40 29 36 17 95 75 55 19 53 54 73 26 38 98 24 71 20 77 M AH Age Character 600 600 60U 600 60U 600 600 600 600 600 60U 600 600 600 600 600 60U 60U 60U 600 600 600 600 600 60U 600 60U 600 600 600 600 60L BOL 600 600 600 600 600 600 600 600 600 GOU 600 New York New York Los Angeles New York Seattle Chicago Seattle New York Chicago New York New York New York New York New York New York Los Angeles New York Chicago New York Los Angeles New York New York New York Los Angeles New York New York Los Angeles New York New York New York New York Seattle New York Chicago Seattle New York Chicago Chicago New Yor! New York Chicago Los Angeles New York New York New York 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 245 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 65 38 71 35 97 97 61 19 67 12 96 88 54 38 100 97 13 37 31 37 36 79 57 67 43 29 50 89 37 98 30 20 84 42 New York New York New York Chicago New York New York Chicago New York Los Angeles New York New York New York New York New York New York New York New York New York Chicago New York New York Los Angeles New York New York Los Angeles Chicago New York New York New York New York New York New York New York Los Angeles Los Angeles Chicago New York New York Chicago Los Angeles New York Chicago New York New York New York Los Angeles New York New York New York New York New York New York New York New York Chicago New York New York New York Chicago Chicago New York New York New York New York New York New York Los Angeles New York New York New York 8 600 600 60L 600 600 600 600 60U 600 600 600 600 604 600 600 600 600 600 600 600 60L 600 600 600 GOU 600 600 600 600 604 600 600 600 600 EU 600 600 600 600 O 1 2 3 4 5 6 7 8 M M M M F F. M M M F M M M M M F F 0 1 2 3 4 5 6 265 M M M M M M M M M M M M 83 42 30 66 22 23 13 45 87 + M F F M F 266 267 268 269 270 85 41 89 87 25 14 38 87 67 34 60U 600 GOL Part 1 Normal View Ready Sum=0 Fill Calibri (Body) 12 AA- abc Wra U Clear A Paste AZ11 AR fx AT AS AU AX AY AW Buy (1) or not(0)? Customer # Gender Location Age 1 2 3 M M F 4 5 M F M M F M M M 73 58 72 54 86 35 21 59 64 36 36 41 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 F M M M M M M M M 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Los Angeles New York Los Angeles New York Los Angeles New York New York New York New York Los Angeles New York Los Angeles New York Chicago Los Angeles Los Angeles New York New York Los Angeles New York New York Los Angeles Los Angeles New York Seattle New York New York New York New York Seattle 46 30 34 100 87 34 16 57 39 85 61 57 54 84 88 77 36 20 F AV Age Character 60U 600 60U 600 60U 600 600 600 60U 600 600 600 600 600 600 60U 600 600 600 600 600 60U 60U 600 600 60U 60U 60U 600 600 M M M M M M F M F