Customer demand must be met but cannot be exceeded Outgoing shipments from the brewery may not exceed its manufacturing capacity of 28,100 cases per year Staging facility has no storage capability and so all outbound shipments from the staging facility must be equal to all inbound shipments Storage space at the brewery will limit the volume of cases that can be direct shipped from the brewing facility directly to retail locations to 7,000 cases Downtown Bearden Far West Sokno Powell Cost per Delivery To -> Staging /From Facility Brewery Staging Facility $5 $1 $2 $5 $2.5 $5.5 $4.25 $2 $6 $3 Bearden Far West Estimated Demand Retail Area Downtown # of 6,100 Deliveries Sokno Powell 7,200 3,500 5,500 2,200 1. What is the estimated cost of the minimum cost logistics network? 2. How many deliveries would you make from the brewery to the downtown area in this network? 3. How many deliveries would you make from the staging facility to the downtown area in this network? 4. How much would the cost to deliver a product from the staging facility to downtown need to increase before your optimal solution would change? 5. How much would adding 1 case of storage capacity at the brewery decrease cost