Question: Example 7 : ( Winston , pp . 5 0 3 ) A company is considering opening warehouses in four cities: New York, Los Angeles,
Example : Winston pp
A company is considering opening warehouses in four cities: New York, Los Angeles, Chicage and
Atlanta. Each warehouse can ship units per week. The weekly fixed cost of keeping each each
warehouse open is $ for New York, $ for Los Angeles, $ for Chicago, and $ for Atlanta.
Region of the country requires units per week, region requires units per week, and region
requires units per week. The costs including production and shipping cost of sending one unit from
a plant to a region are shown in the following table. We want to meet weekly demands at minimum
cost subject to the preceding information and the following restrictions:
If the New York warehouse is opened, then the Los Angeles warehouse must be opened.
At most two warehouses can be opened.
Either the Atlanata or the Los Angeles warehouses must be opened.
Formulate an IP that can be used to minimize the weekly costs of meeting demand.
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