Question: 3. The following matrix represents a warehouse location problem. There is a fixed cost for opening any of the five possible warehouses, and the cell

3. The following matrix represents a warehouse location problem. There is a fixed cost for opening any of the five possible warehouses, and the cell entries for each customer are the variable costs of serving that customer from each potential warehouse. The variable costs include inbound transportation, outbound transportation, and warehouse operating costs for all the customers requirements. The objective is to determine which warehouses should be used to serve all customers at minimum total cost. There are not capacity restrictions on the potential warehouses, but some warehouses cannot serve some customers. (Chapter 15 Supply Chain Logistics) X=28

Warehouses

Fixed

Customers

Possible

Cost

1

2

3

4

5

6

7

A

75

80

20+X

2X

70

50

----

100

B

25

----

70

82

80

78

81

35

C

40

100

85

----

50

3X

66

55

D

68

45

----

65

45+X

76

78

60

E

30+X

55

25+X

76

90

----

49

45

F

70

68

50

90

30+X

55

80

50

Apply the add procedure to solve this warehouse location problem. Determine which warehouse should service each customer and indicate the total cost of your solution.

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