EXAMPLE II: Fuente de Vida distributes bottle water in Mexico City. The company serves customers from the traditional (mom & pop stores, kiosks, small restaurants, etc.) and modern channel (convenience stores and supermarkets). Fuente de Vida uses different type of vehicles for their lastmile operations.

The company is analyzing to deploy electric cargo bikes (e-bikes) for their delivery operations in downtown. The characteristics and delivery conditions of downtown are such that e-bikes make a lot of sense. However, further analysis is required to assess their convenience from an economical point of view. For this purpose, you are asked to determine the total delivery cost that would be incurred using these new electric vehicles.

You divided downtown in 6 delivery territories or zones (A, B..., F). Each delivery zone is served by a single e-bike. A preliminary analysis showed that one cargo e-bike has enough capacity to fulfill the daily demand of any given zone. The table below shows the (X, Y) coordinates of the zone's centers and the area (in squared Km) of each zone. Additionally, it gives information about the number of customers and the number of bottles of water ordered that will be attended on an average day.

The accounting department has shared with you cost information from similar vehicles. Based on this information, you estimated the following:

• The cost to load each e-bike at the DC is $5.
• The cost to stop at a customer location is $0.3 per stop.
• The cost to unload and deliver a single bottle of water at a destination is $0.01.
• The cost for riding the e-bikes is $3.5 per Km.

What is the daily cost for the local riding of the e-bikes in downtown Mexico City? Assume a traveling salesman factor (KTSP) of 1.1.

Round your answer to the nearest integer.

Notice that the distribution center (DC) is located at coordinates (0,0)