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) 5000 Memphis (W) 7800 Birmingham (W) 3000 Miami 4400 Columbia (W) 1400 Nashville (W) 6800 Jackson 2200 New Orleans 5800 Jacksonville 8800 Orlando (W) 2200 Louisville (W) 3000 Information has been compiled showing the cost per carton of shipping 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 0.43 Atlanta 0.00 0.15 0.21 0.40 0.31 0.42 0.38 0.66 0.25 0.48 Louisville Memphis Nashville Orlando Birmingham 0.15 0.00 0.36 0.25 0.46 0.36 Columbia 0.21 0.36 0.00 0.60 0.30 0.50 0.42 0.36 0.50 0.59 0.73 0.00 0.38 0.26 0.62 0.21 0.69 0.38 0.00 0.25 0.19 0.44 0.41 0.56 0.17 0.21 0.91 0.43 0.55 0.44 0.70 0.14 0.86 0.78 0.23 0.69 0.26 0.75 0.19 0.35 0.55 0.62 0.64 0.44 0.69 0.44 0.38 1.09 0.17 0.70 0.86 1.00 0.21 0.41 0.78 0.00 0.53 0.69 0.65 0.00