$($This problem is based upon $2019$ MBA graduate Sam E$.$ consulting problem discussed last

Spring. All names and contexts have been changed to protect those covered under US Code

Title $27$ legislation.$)$

Due to the plethora of companies involved in the medical cannabis area, Edison$$s Edibles needs

to consolidate its warehouses to stay profitable. Warehouses S$23,$ S$27$ and S$15$ are to be closed,

and their $2$ main SKU groups of products redistributed to the other $7$ active warehouses

$($S$2,$S$4,$S$6,$S$8,$ S$10,$ S$12,$ S$14).$

The two main SKU groups $$ Group X and Group Y$.$ Each SKU Group uses up a certain amount

of warehouse space $$ Group X uses $5$ space units per unit of product and Group Y uses $9$ space

unit per unit of product.

Our goal is to find the least cost way of sending Group X and Y inventory from the three closing

warehouses to the remaining $7.$ Cost is defined below per unit of product $($all products cost the

same$)$ between the corresponding warehouses.

The number of product units that needs to be redistributed is shown below $$ by warehouse by

SKU group.

The following table depicts attributes about the remaining active warehouses $$ specifically the

space available to house existing SKU Group units from the $3$ closing warehouses and a measure

of inventory turnover $($INV TURN$)$ for each SKU Group at each warehouse. The higher the

inventory turnover measure, the quicker the products sell $($and that is $$good$).$ Weighted

averages of INV TURN will impact the model solution $($see later$).$

X Y

S$231100750$

S$27500430$

S$15250800$

Create an LP model that will determine how to send the two kinds of SKU units from S$23,$ S$27$

and S$15$ to the remaining $7$ active warehouses. Cost should be minimized. Your model must be

very explicit in its specifications.

Other aspects of your model:

$-$ All SKU units must be sent.

$-$ The space of arriving units at an active warehouse is constrained by the space

available. Refer back to $3$rd paragraph for how much space each SKU group requires.

$-$ Also, at least $50\%$ of the space requirements at each active warehouse must be used

by SKU Group arrivals. This is a de facto $$balancing$$ constraint.

$-$ To make sure products are sent to where they are more likely to be sold, the INV

TURN of arriving units at each warehouse must average at least $21\mathrm{.}5$ per unit.

$-$ No more than $525$ units combined of $($X$,$Y$)$ can be sent from any one closing

warehouse to any one active warehouse. This is units of SKU groups, not anything to

do with warehouse space. Combined X$+$Y$.$

$-$ At the end, make sure integer units are sent.

Summarize your solution by identifying how the $3$ closing warehouses distribute their SKU

units. Words or pictures or tables that go a little beyond just your spreadsheet model.

Note: Incorrect decision variable specification will limit available checkpoint $$points$$ to no more

than $40\%$ of the possible total points that can be earnedSKU UNITS