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Problem 3 : In Problem 2 , suppose now that Amazon wants to build 2 new distribution centers. The objective is to minimize the total

Problem 3: In Problem 2, suppose now that Amazon wants to build 2 new distribution
centers. The objective is to minimize the total distance that its shipments travel from the
distribution centers to each of the demand points.
(a) Formulate an NLP model for this problem? (10 points)
Hint: the objective function should minimize the total distance the shipments travel
to each demand location from the closest distribution center. But how do we find the
closest distribution center? Lets think of an example. Miami needs 13 shipments.
Suppose Miami is 200 miles from DC 1 and 1000 miles from DC 2. To calculate the
total distance that the shipments to Miami will travel, we can use the min function as
follows: min{200,1000}\times 13=2600. In other words: min{distance from Miami to DC
1, distance from Miami to DC 2}\times number of shipments to Miami. Thus, your objective
function should be in the following form:
min (min{distance from NY to DC 1, distance from NY to DC 2}\times number of shipments to NY)+
(min{distance from Boston to DC 1, distance from Boston to DC 2}\times number of shipments to Boston)+
...
(min{distance from Seattle to DC 1, distance from Seattle to DC 2}\times number of shipments to Seattle)

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