In the scenario of the previous problem, Southeasterns management wants to streamline communications by requiring each distribution center to be served by just one warehouse. When this requirement is imposed, how much does total cost increase?

Planning Distribution: Southeastern Foods has hired you to analyze their dis- tribution system design. The company has eleven distribution centers, with monthly volumes as listed below. Seven of these sites can support warehouses, in terms of the infrastructure available, and are designated by (W). Center Volume Center Volume Atlanta (W) Birmingham (W) Columbia (W) Jackson Jacksonville Louisville (W) 5000 3000 1400 2200 8800 3000 Memphis (W) Miami Nashville (W) New Orleans Orlando (W) 7800 4400 6800 5800 2200 Information has been compiled showing the cost per carton of ship from any potential warehouse location to any distribution center. Southeastern has standardized its warehouse design so that all such facilities can handle up to 15,000 cartons in a month. In addition, the monthly fixed cost for operating one of these warehouses is estimated at $3600. Southeastern could build warehouses at any of the designated locations, but its criterion is to minimize the total of fixed operating costs and variable shipment costs. Atl Bir Col Jac Jvl Lvl Mem Mia Nash New Orl Atlanta Birmingham Columbia Louisville Memphis Nashville Orlando 0.00 0.15 0.21 0.40 0.31 0.42 0.38 0.66 0.25 0.15 0.00 0.36 0.25 0.46 0.36 0.26 0.75 0.19 0.21 0.36 0.00 0.60 0.30 0.50 0.62 0.64 0.44 0.42 0.36 0.50 0.59 0.73 0.00 0.38 1.09 0.17 0.38 0.26 0.62 0.21 0.69 0.38 0.00 1.00 0.21 0.25 0.19 0.44 0.41 0.56 0.17 0.21 0.91 0.00 0.43 0.55 0.44 0.70 0.14 0.86 0.78 0.23 0.69 0.48 0.35 0.69 0.70 0.41 0.53 0.65 0.43 0.55 0.44 0.86 0.78 0.69 0.00