Ernie's Market is a small independent chain of neighborhood grocery stores. Ernie's distributes high volume product to its stores from a company owned and operated warehouse. Additionally, the company is looking to start a back-hauling program with its suppliers in an effort to reduce its transportation costs.

Kimberly-Clark operates a factory in the vicinity of Ernie's stores and warehouse and will be the first participant in a pilot back-hauling program. Figure 1 is a road map showing the locations of Kimberly-Clark and Ernie's warehouse and stores and the distances along each of the road segments.

Here are your tasks:

1. Ernie's believes that its costs are directly proportional to the transportation distance. Determine delivery and back-haul routes that will minimize Ernie's total costs.

Kimberly-Clark Warehouse Figure 1 - Road System showing Ernie's Warehouse, Stores, and Kimberly-Clark Factory Location Cost per Starting Ending Mile Ratio Warehouse A 2.00 Warehouse 2.00 Warehouse 2.00 A 1.50 A D 1.50 1.25 C 2.00 2.00 1.75 1.75 1.75 GIGnnmMM 1.25 In annmmmoonwow 1.25 1.50 1.25 Kimberly-Clark 2.00 H 1.75 Kimberly-Clark 1.25 Kimberly-Clark 1.25