Question: Dr Pepper bottles soft drinks that it distributes to retail outlets from ten warehouses in USA. A single bottling plant is located in Seattle. The

Dr Pepper bottles soft drinks that it distributes to retail outlets from ten warehouses in USA. A single bottling plant is located in Seattle. The product is shipped from the plant to the warehouses via trucks each of which possibly travels more than one warehouse in a trip. Dr Pepper outsources the transportation of the products to a third-party trucking company, DHL. DHL charges a fix fee of $500 plus a variable free of $0.80 per miles per a trip of a truck. For instance; if the length of a trucks trip is 600 miles, then DHL charges 500 + 600*0.80 = $980 to Dr Pepper. The capacity of each truck is 36 pallets but transportation fee does not change if the all capacity is used or not. In a particular day the demands of the warehouses are as listed in the following table. Use Savings method to find the number of routes (trucks) needed, warehouses on the routes, and the sequence the truck should serve the warehouses based on the real distance matrix given below (assume the warehouses are located at about the center of city zones). Calculate total cost of the route plan.

Warehouse location Demand (pallets)
New York 12
Chicago 10
Boston 9
Houston 6
Washington 16
Denver 14
Detroit 8
Austin 6
Nashville 7
Atlanta 9
Total 97
Seattle (Plant) New York Chicago Boston Houston Washington Denver Detroit Austin Nashville Atlanta
Seattle (Plant) 0 233 424 151 422 324 411 540 336 500 647
New York 233 0 544 384 655 453 579 318 258 620 414
Chicago 424 544 0 537 705 718 444 618 322 311 906
Boston 151 384 537 0 271 243 325 691 487 544 745
Houston 422 655 705 271 0 320 326 962 747 549 1016
Washington 324 453 718 243 320 0 564 771 660 783 734
Denver 411 579 444 325 326 56 0 848 550 225 993
Detroit 540 318 618 691 962 771 848 0 304 853 453
Austin 336 258 322 487 747 660 550 304 0 555 592
Nashville 500 620 311 544 549 783 225 853 555 0 1034
Atlanta 647 414 906 745 1016 734 993 453 592 1034 0

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