Question
Due to the plethora of companies involved in the medical cannabis area, Edison's Edibles needs to consolidate its warehouses. Warehouses S23, S27 and S15 are
Due to the plethora of companies involved in the medical cannabis area, Edison's Edibles needs
to consolidate its warehouses. Warehouses S23, S27 and S15 are to be closed, and their 3 main
SKU groups of products redistributed to the other 7 active warehouses (S2,S4,S6,S8, S10, S12,
S14).
The three main SKU groups - Group X, Group Y and Group Z. Each SKU Group uses up a
certain amount of warehouse space - Group X uses 5 space units per unit of product, Group Y
uses 9 space unit per unit of product, and Group Z uses 7.5 space units per unit of product.
Our goal is to find the least cost way of sending Group X,Y and Z inventory from the three
closing warehouses to the remaining 7. Cost is defined below per unit of product (all products
cost the same) between the corresponding warehouses.
COST $2 $6 $8 $10 S12 S14 S23 36 30 45 59 54 67 51 S27 67 40 73 60 57 68 58 $15 47 50 48 45 75 45 52SKU UNITS X Y Z 523 1100 750 625 527 500 430 575 $15 250 800 750INV TURN X Y Z SPACE 52 32 24 17 8000 19 22 10 7500 56 9 31 20 9500 $8 16 5 20 6000 $10 21 26 16 12000 $12 14 13 20 10000 S14 27 28 22 6500Step by Step Solution
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