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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 booksweek
Northwest Southwest Midwest Southeast Northeast
Spokane $ $ $ $ $ $
Reno $ $ $ $ $ $
Omaha $ $ $ $ $ $
Harrisburg $ $ $ $ $ $
Jacksonville $ $ $ $ $ $
Customer demand per week
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 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 wherever required.
Determine the total cost.
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