Exercise $2$

The company "Swedish Blankets Inc." is trying to reassess which of its facilities are

beneficial to the established distribution network. See the following table for the

transportation costs that each facility faces:

Remember to make use of a dummy location $($supplier or customer, depending on

what is needed$).$

Evaluate the total costs of this starting solution, where all locations are open, using

Vogel's approximation method. $($if you do not know this method yet, please

familiarize yourself with it$,$ i$.$e$.,$ self$-$study on this method$).$

Using the DROP algorithm, which of these facilities should be built and which should

be closed?

Please do this exercise by hand and do not use the Excel solver.