ABCDEFGHIJKLMNOPQRSTUVWXYZ
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Per unit Dist. Cost from DC to Retail Region
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Potential DC LocationFixed Costs if DC openedEastSouthMidwestWest
DC Capacity
Fixed Cost
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New York $ 6,000.00 $ 206.00 $ 225.00 $ 230.00 $ 290.00 150 $ 6,000.00
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Atlanta $ 5,500.00 $ 225.00 $ 206.00 $ 221.00 $ 270.00 150 $ 5,500.00
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Chicago $ 5,800.00 $ 230.00 $ 221.00 $ 208.00 $ 262.00 150 $ -
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Los Angeles $ 6,200.00 $ 290.00 $ 270.00 $ 262.00 $ 215.00 150 $ 6,200.00
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Demand in each retail region
10015011090
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Dist Cost $ 20,600.00 $ 30,900.00 $ 27,220.00 $ 19,350.00
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Objective: Minimize Total Cost
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$ 115,770.00
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DVs: Locate a DC in this city?
Big M100000
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New York1
Constraint: These are binary
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Atlanta1
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Chicago0
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Los Angeles1
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DVs: How many units?
Constraint: Can't have more units than capacity
Constraint: Only can assign DC to a city if an DC exists there!
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New York1000500150<=150150<=100000
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Atlanta015000150<=150150<=100000
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Chicago00000<=1500<=0
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Los Angeles
006090150<=150150<=100000
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Constraint: Satisfy Demand
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10015011090
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>=>=>=>=
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10015011090
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Constraint: Every region needs to be assigned a DC
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10015011090
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>=>=>=>=
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1111
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