Royal Canin trying to make the most effective use of an organization's resources. Therefore, Royal Canin plan to produces two types of cat biscuits which are chicken-flavored and fish-flavored biscuits. Each formula has been created to deliver nutrition tailored to the cat health needs whatever their breed, age or lifestyle. It is costs $25 to make chicken-flavored biscuit and $30 to make fish- flavored. Based on the analysis of current inventory levels and outstanding orders, Royal Canin's production manager has specified that at least 300 units of chicken-flavored and at least 200 units of fish-flavored must be produced during the next month. In addition, Royal Canin must produce a total of at least 600 units of the cat biscuits in the next month. Royal Canin recognized that good inventory management is crucial. On the other hand, Royal Canin can reduce costs by reducing inventory. In addition, production may stop and customers become dissatisfied when an item is out of stock. Royal Canin fixed costs. total $205,000 per year, their labor costs are $30 per item and materials costs $20 per item. Royal Canin has relatively stable demand for its product throughout the year, with an annual total of 30,000 items. The cost of placing an order is estimated at $200 and the annual cost of holding inventory is estimated at 30% of any product's value. The company purchases the items for $250. Royal Canin location of a new factory, warehouse or distribution center is a strategic issue with substantial cost implications. Each new potential plant, warehouse or distribution center will require a different allocation of shipments depending on its own production and shipping costs and the costs of each existing facility. The choice of a new location depends on which will yield the minimum cost for the entire system. Royal Canin has three plants located at Des Moines, Evansville and Fort Lauderdale. Des Moines has 76 units of capacity, Evansville 82 units of capacity and Fort Lauderdale 77 units of capacity per period. All three plants supply three warehouses located at Albuquerque, Boston and Cleveland. The warehouse at Albuquerque requires 72 units per period; the warehouse at Boston requires 102 units per period; and the one at Cleveland requires 41 units per period. The costs of transporting each plant to each warehouse are as follows: Des Moines $4, $8, $8; Evansville $16, $24, $16; Fort Lauderdale $8, $16, $24. In this period of time, there are a lot of uncertainties and concerns among pet parents. Royal Canin priority is to ensure all cats and dogs need are not deprived while ensuring the safety of everyone. At the same time, many of the local small businesses are badly affected. Royal Canin calls for action to do their parts by staying at home, ensuring pets are healthy with good nutrition (and of great course good hygiene) with home delivery services to customer and strictly comply with the rules and regulations set by the authorities during the MCO. The following network shows the different connecting cities and the distance of each connecting branch, in miles): 94 3 58 81 73 54 9 55 1 62 7 12 96 4 47 85 81 43 71 89 98 10 105 8 84 13 73 2 106 75 78 5 11 144