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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