Mill Mountain Coffee Company currently operates 12 coffee shops in downtown Kelowna. The company has been losing

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Mill Mountain Coffee Company currently operates 12 coffee shops in downtown Kelowna. 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 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. 

The following table shows the coffee shops within 5 minutes walking distance of another shop and the average annual cost of the existing stores.


Stores Within 5 Minutes' Annual Average Store Location Operating Cost($) Walking Distance 1. 3rd Street 456 3rd Street,


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

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Related Book For  book-img-for-question

Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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