i. Update the problem with the new information. What is the new optimal total cost? Hint: Note that we dont need to use every warehouse! If we dont use one, we can save $3600! For this, create a new set of decisions, where you plug 1 if you use the warehouse (and add the $3600 cost to the total), and 0 if you do not. ii. How many warehouses should I use in this case? iii. What is the optimal distribution system? (Do it on Excel for me to see)

Southeastern Foods has hired you to analyze their distribution system design. The company has eleven distribution centers, with monthly volumes as listed below. Seven of these sites have warehouses, in terms of the infrastructure available. Information has been compiled showing the cost per carton of shipping from any potential warehouse location to any distribution center. Southeastern has standardized its warehouse design so that all such facilities can handle up to 15,000 cartons in a month. G H 1 K L M A B C D DE F G 1 Capacitated Location 2 3 Atlanta Birmingham Columbia Jackson Jacksonville Louisville 4 Atlanta 0.00 0.15 0.21 0.40 0.31 0.42 5 Birminghar 0.15 0.00 0.36 0.25 0.46 0.36 6 Columbia 0.21 0.36 0.00 0.60 0.30 0.50 7 Louisvile 0.42 0.36 0.50 0.59 0.73 0.00 8 Memphis 0.38 0.26 0.62 0.21 0.69 0.38 9 Nashville 0.25 0.19 0.44 0.41 0.56 0.17 10 Orlando 0.43 0.55 0.44 0.70 0.14 0.86 11 Volume Ne 5000 3000 1400 2200 8800 3000 12 Memphis 0.38 0.26 0.62 0.38 0.00 0.21 0.78 7800 Miami 0.66 0.75 0.64 1.09 1.00 0.91 0.23 4400 Nashville New Orlean: Orlando 0.25 0.48 0.43 0.19 0.35 0.55 0.44 0.69 0.44 0.17 0.70 0.86 0.21 0.41 0.78 0.00 0.53 0.69 0.69 0.65 0.00 6800 5800 2200 Capacity 15000 15000 15000 15000 15000 15000 15000 What is the total distribution cost (fixed warehouse costs plus variable distribution cost) for the optimal configuration? Now you learn that the monthly fixed cost for operating one of these warehouses is estimated at $3600 a month. Southeastern is debating whether to close some of these warehouses to avoid paying the fixed $3600 for each of them