Question: 2. (From Decision Modeling with Microsoft Excel by Moore & Weatherford, 6th edition, Prentice Hall, 2001.) A Distribution company wants to minimize the cost of

2. (From Decision Modeling with Microsoft Excel by Moore & Weatherford, 6th edition, Prentice Hall, 2001.) A Distribution company wants to minimize the cost of transporting goods from its warehouses A, B, and C to retail outlets 1, 2, and 3. The cost of transporting one unit from warehouse to retailer is given in the following table: Retailer 1 Warehouse a b 15 9 11 2 32 7 19 3 21 6 5 Demand 200 150 175 The fixed cost of operating a warehouse is $500 for A, $750 for B, $600 for C, and at least two of them have to be open. The warehouse can be assumed to have unlimited storage capacity. a. Formulate and solve an ILP to decide which warehouses should be opened and the amount to be shipped from each warehouse to each retailer. b. Solve your formulation in Excel and report the optimal solution and optimal cost. (Set Optimality Gap to .1%)

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