Question: (25 points): To reduce coordination complexity, Chester Inc. considers the condition that each market should be supplied using only a single warehouse. Taking this into

(25 points): To reduce coordination complexity, Chester Inc. considers the condition that each market should be supplied using only a single warehouse. Taking this into account, what will be the optimal network configuration for Chester Inc. using the data with Table.
(a) (10 pts): Write down the explicit mathematical formulation. That is, define decision variables, objective function, and each of the required constraints using the parameters given in Table.
(b) (15 pts): Implement the model you build in part (a) in Excel and solve it. Report your warehouse locations, demand allocation, and the total minimum cost? (Submit your excel workbook used for solving your optimization model)
Shipping Cost per unit ($ / unit) Markets North East South West Omaha 8 6 9 10 13 Detroit 9 12 7 14 9 16 5 Warehouse Capacity 35,000 50,000 40,000 25,000 12,000 35,000 Fixed costs ($) 200,000 400,000 150,000 100,000 300,000 250,000 12 Tampa Phoenix Hartford Casper 3 4 14 5 NW 3 12 10 5 7 5 Demand 45,000 20,000 30,000 30,000Step by Step Solution
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