Twobucks Coffee Company currently operates 12 coffee shops in downtown Nashville. The company has been losing money and wants to downsize by closing some stores. Its policy has been to saturate the downtown area with stores so that one is virtually always in the sight of a potential or current customer. However, the company€™s new policy is to have enough stores so that each is within 5 minutes€™ walking distance of another store. The company would also like to have annual operating costs of no more than $900,000.

Formulate and solve a linear programming model that will select the minimum number of stores the company will need to achieve its new policyobjective.

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Annual Average Operating Cost (S) 456 207 139 246 Store Location Stores Within 5 Minutes' Walking Distance 1. 3rd Street 2. 10th Street 3. South Street 4. Mulberry Avenue 5. Rose Street 6. Wisham Avenue 7. Richmond Road 8. Hill Street 9. 23rd Avenue 10. Broad Street 3rd Street, Rose Street 10th Street, South Street, Broad Street South Street, Hill Street, 10th Street Mulberry Avenue, Beamer Boulevard Rose Street, 3rd Street, Church Street Wisham Avenue, Broad Street, 23rd Avenue Richmond Road, Broad Street Hill Street, South Street 23rd Avenue, Wisham Avenue Broad Street, Wisham Avenue, Richmond Road, 10th Street Church Street, Rose Street, Beamer Boulevard Beamer Boulevard, Mulberry Avenue, Church Street 212 195 170 184 163 11. Church Street 12. Beamer Boulevard 225 236