2. Consider a distribution planning problem with 3 warehouses (W1 to W3) and 8 retailers (R1 to R8). Warehouse capacity is 4000, 5000, and 3000 respectively for W1 to W3. Retailer demands are (from R1 to R8): 650, 400, 850, 1900, 3100, 250, 350, and 400. The unit shipping costs (in dollars) between the warehouses and retailers is given in the table below. Determine the optimum distribution plan that will minimize the total cost (formulate and solve, e.g., using Excel solver). |||||| W1 3.50 3.60 4.30 4.80 3.10 3.70 3.80 3.80 W2 4.30 4.90 3.80 3.70 4.40 3.90 4.10 4.00 W3 3.00 3.90 3.30 4.20 3.40 3.10 3.50 2.80 3. For problem 2, assume that a retailer can only be supplied by a single warehouse. Reformulate this problem and solve. 4. For problem 2, assume that the warehouse capacities for W1 to W3 are 6,000, 5,000, and 6,000 respectively if they are chosen. Fixed costs for each warehouse are $1.2M, $1.1M, and $1.3M (where M is million). Each warehouse has a life of 15years and the effective interest rate for the investment is 12%. 2. Consider a distribution planning problem with 3 warehouses (W1 to W3) and 8 retailers (R1 to R8). Warehouse capacity is 4000, 5000, and 3000 respectively for W1 to W3. Retailer demands are (from R1 to R8): 650, 400, 850, 1900, 3100, 250, 350, and 400. The unit shipping costs (in dollars) between the warehouses and retailers is given in the table below. Determine the optimum distribution plan that will minimize the total cost (formulate and solve, e.g., using Excel solver). |||||| W1 3.50 3.60 4.30 4.80 3.10 3.70 3.80 3.80 W2 4.30 4.90 3.80 3.70 4.40 3.90 4.10 4.00 W3 3.00 3.90 3.30 4.20 3.40 3.10 3.50 2.80 3. For problem 2, assume that a retailer can only be supplied by a single warehouse. Reformulate this problem and solve. 4. For problem 2, assume that the warehouse capacities for W1 to W3 are 6,000, 5,000, and 6,000 respectively if they are chosen. Fixed costs for each warehouse are $1.2M, $1.1M, and $1.3M (where M is million). Each warehouse has a life of 15years and the effective interest rate for the investment is 12%