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Search for the location of distribution centers (DCs) and stores of a retail store (e.g., Target, Walmart, and Staples) in a specific area (e.g., in

  1. Search for the location of distribution centers (DCs) and stores of a retail store (e.g., Target, Walmart, and Staples) in a specific area (e.g., in a state).
  2. Develop a transportation problem for distributing an arbitrary item from the DCs to the stores. You can use made-up numbers for the demand at each store and inventory availability at each DC.

Hint: You need to think about what objective function to choose. For example, should it be based on travel time or distance

  1. Write the complete formulation.
  2. Use Excel to solve the formulated problem. Remember to generate and Answer and Sensitivity reports.
  3. Use the Sensitivity report to answer the following questions:
    • If they have some extra inventory, at which DC should they store them?
    • If they can manipulate the demand at stores through increasing the price, which store(s) should eb given priority for reducing demand?

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