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Noble Amazon sells books online. Management is trying to determine the best sites for the company s warehouses. The five potential sites under consideration are

Noble Amazon sells books online. Management is trying to determine the best sites for the companys warehouses. The five potential sites under consideration are listed in the first column of the following table. Most of the sales come from customers in the United States. The average weekly demand from each region of the country, the average shipping cost from each warehouse site to each region of the country, the fixed cost per week of each warehouse if it is operated, and the maximum capacity of each warehouse (if it is operated) are shown in the following table.
Warehouse Site Average Shipping Cost ($/book) Fixed Cost (per week) Warehouse Capacity (books/week)
Northwest Southwest Midwest Southeast Northeast
Spokane $ 2.40 $ 3.50 $ 4.80 $ 6.80 $ 5.75 $ 40,00020,500
Reno $ 3.25 $ 2.30 $ 3.40 $ 5.25 $ 6.00 $ 30,00020,500
Omaha $ 4.05 $ 3.25 $ 2.85 $ 4.30 $ 4.75 $ 25,00015,500
Harrisburg $ 5.25 $ 6.05 $ 4.30 $ 3.20 $ 2.75 $ 40,00025,500
Jacksonville $ 6.95 $ 5.85 $ 4.80 $ 2.10 $ 3.50 $ 30,00015,500
Customer demand (per week)8,00012,0009,00014,00017,000
Click here for the Excel Data File
Formulate and solve a mixed BIP model in a spreadsheet.
Determine which warehouse sites Noble Amazon should operate.
Note: Leave no cells blank. Enter "0" wherever required.
How should books be distributed from each warehouse to each region of the country to minimize total cost.
Note: Leave no cells blank. Enter "0" wherever required.
Determine the total cost.

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