Due to increased sales, a company is considering building three new distribution centers (DC) to serve four regional sales arcas. The annual cost to operate DC I is $500 (in thousands of dollars). The cost to operate DC 2 is $600 (in thousands of dollars). The cost to operate DC 3 is 5525 (in thousands of dollars). Assume that the variable cost of operating at each location is the same, and therefore not a consideration in making the location decision. The table below shows the cost (S per item) for shipping from each DC to cach region. Region DC A 1 B D - 1 3 3 2 2 2 4 1 3 3 3 2 2 3 The demand for region A is 70,000 units, for region B. 100,000 units, for region C, 50,000 units, and for region D), 80,000 units. Assume that the minimum capacity for the distribution center will be 500,000 units. The Excel solution to the problem is given below A E H 1 K F G Region B DC B D Shipment Capacity Building DC 1 500,000 1 2 500,000 2 3 500,000 1 3 Received OP Demand OO A 0 0 70000 70000 OO WN D Ship OP 0 OCH 0 OCH 80000 300000