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Reference CHB, Inc., is a bank holding company that is evaluating the potential for expanding into a 13-county region in the southwestern part of the

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Reference CHB, Inc., is a bank holding company that is evaluating the potential for expanding into a 13-county region in the southwestern part of the state. State law permits establishing branches in any county that is adjacent to a county in which a PPB (principal place of busi- ness) is located. The following map shows the 13-county region, with the population of each county indicated. a. Assume that only one PPB can be established in the region. Where should it be lo- cated to maximize the population served? (Hint: Review the Ohio Trust formulation in Section 11.3. Consider minimizing the population not served, and introduce vari- able y, = 1 if it is not possible to establish a branch in county i, and y, = 0 otherwise.) 195,000 87,000 7 96,000 117,000 52,000 57,000 233,000 8 88,000 11 95,000 106,000 10 76,000 13 12 175,000 323,000

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