The Midlands Produce Company is a food distributor that wants to construct new warehouse-distribution centers in some of the cities where it has grocery store customers, which will also serve stores in the other cities where it doesn’t have distribution centers. A distribution center can effectively service all stores within a 300-mile radius. The company also wants to limit its fixed annual costs to less than $900,000. The following table shows the cities within 300 miles of every city, and the projected fixed annual charge for a distribution center in each city.

a. Determine the locations of the minimum number of stores Midlands will have to build to serve all ten cities in its supply chain network.
b. What is the solution if the cost constraint is removed from the model formulation? What is the difference incost?

  • CreatedApril 10, 2014
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