2. The following matrix represents a warehouse location problem. There is a fixed cost for opening any of the five possible warehouses, and the cell entries for each customer are the variable costs of serving that customer from each potential warehouse. The variable costs include inbound transportation, outbound transportation, and warehouse operating costs for all the customer’s requirements. The objective is to determine which warehouses should be used to serve all customers at minimum total cost.

There are no capacity restrictions on the potential warehouses, but some warehouses cannot serve some customers.

Apply the add procedure to solve this warehouse location problem.
Determine which warehouse should service each customer and indicate the total cost of your solution.

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Warehouses Fixed Customers Possible Costs 1 2 3 4 5 6 A 6 8 5 2 2 6 6 B -O 6 9 X 8 9 2 6 C 5 7 4 7 5 6 4 D 8 4 3 6 X 3 5 E 8 6 2 6 6 4 8 Note: X indicates no service is possible between warehouse and customer.