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Problem $3$: Location Selection for EXP Logistics

EXP logistics is a third party logistic company that operates several distribution centers at multiple

locations. The company recently decided to expand its warehouse coverage in Texas and planned to

construct new warehouses in several candidate sites. The company has two types of warehouses: Mega

warehouses and Regular warehouses. Mega warehouses have larger capacity than Regular warehouses.

There are $8$ different sites available for the company to build new warehouses. The company can build

either type of warehouses at a given site. However, the company can build at most one warehouse at

any location. The following table summarizes the estimated net present value $($NPV$)$ of the cash flows $($in

million$)$ resulting from locating each type of warehouse at each of the sites and also indicates which

sites are within $20$ miles of each other.