Question $2$

SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its

clients are located primarily in the $5$ states listed below. There are four potential sites for home

offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los

Angeles is $$165,000,$ Tulsa is $$131,000,$ Denver is $$140,000,$ and Seattle is $$145,000.$ The

expected number of trips to each state and the travel costs from each potential site are shown

below. Each consultant is expected to take at most $40$ trips each year.

If at most $3$ consultants are to be assigned to a home office, where should the offices be set up$?$

How many consultants should be assigned to each office? What is the annual cost of this

network? Please generate the conceptual model and excel model to answer these questions.

Tips: The limit number of consultants and the maximal number of the expected trips for each

consultant determine the capacity of the home offices in each area. When you get the number of

trips assigned to each office, then divided by $40$ and you can get the required number of

consultants.