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The Best Buy Office Products Corporation (BBOPC) is a wholesale distributor for office products to 20 markets in the Midwestern states. The company is seeking
The Best Buy Office Products Corporation (BBOPC) is a wholesale distributor for office products to 20 markets in the Midwestern states. The company is seeking a DC location strategy for next year that will minimize their total distribution costs. The Excel table contains the data for BBOPC's DC location model. The table is divided into three parts. Eight potential locations for third-party warehouses and their distances to the 20 markets are listed in the Distances section. At each location, BBOPC has the choice of selecting among no DC or a DC. As shown in the section labeled DC Options, a fixed cost (FC) and a variable cost (VC) for outbound flows are associated with each DC. These flows are measured in truckloads for the year up to the stated capacity of the DC option. All costs are measured in thousands of dollars. The demands for full truckload shipments for next year, along with product flow from the DCs to meet them, are listed in the section labeled Flows. Cost per truckload per mile is shown in cell B58 (60 cents). Your cost model should include the fixed cost, variable cost and transportation cost. The objective is to select the DCs
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