Question: American Cargo will decide on the locations for two new warehouses. The potential candidate sites are New York, Arizona, Texas and Dallas. The following table

American Cargo will decide on the locations for two new warehouses. The potential candidate sites are New York, Arizona, Texas and Dallas. The following table provides the weekly capacities and the weekly fixed costs for operating warehouses at each site.

Warehouse	Weekly capacity (units)	Weekly fixed cost
New York	50	200
Arizona	52	160
Texas	56	240
Dallas	54	140

The warehouses will ship the cargos to three countries: Russia, Greece and Netherland. Weekly requirements are 40 units for Russia, 36 units for Greece and 24 units for Netherlands. The following table provides the cost to ship one unit between each location and country.

Warehouse Russia Greece Netherlands

New York $4 $7 $9

Arizona $6 $3 $11

Texas $5 $6 $5

Dallas $8 $10 $2

In addition, the following conditions must be satisfied by the final decision: (1) A warehouse must be opened in at least one of New York and Dallas, (2) if a warehouse is opened in New York, then one must be opened in Texas. Which two sites should be selected for the new warehouses to minimize total fixed and shipping costs? Formulate this problem as an IP model and then provide an excel solution.

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