*Objective Value Should be $20,862*

Planning Distribution: Southeastern Foods has hired you to analyze their dis- tribution system design. The company has eleven distribution centers, with monthly volumes as listed below. Seven of these sites can support warehouses, in terms of the infrastructure available, and are designated by (W). Center Volume Center Volume Atlanta (W) Birmingham (W) Columbia (W) Jackson Jacksonville Louisville (W) 5000 3000 1400 2200 8800 3000 Memphis (W) Miami Nashville (W) New Orleans Orlando (W) 7800 4400 6800 5800 2200 Information has been compiled showing the cost per carton of ship 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. In addition, the monthly fixed cost for operating one of these warehouses is estimated at $3600. Southeastern could build warehouses at any of the designated locations, but its criterion is to minimize the total of fixed operating costs and variable shipment costs. Atl Bir Col Jac Jvl Lvl Mem Mia Nash New Orl Atlanta Birmingham Columbia Louisville Memphis Nashville Orlando 0.00 0.15 0.21 0.40 0.31 0.42 0.38 0.66 0.25 0.15 0.00 0.36 0.25 0.46 0.36 0.26 0.75 0.19 0.21 0.36 0.00 0.60 0.30 0.50 0.62 0.64 0.44 0.42 0.36 0.50 0.59 0.73 0.00 0.38 1.09 0.17 0.38 0.26 0.62 0.21 0.69 0.38 0.00 1.00 0.21 0.25 0.19 0.44 0.41 0.56 0.17 0.21 0.91 0.00 0.43 0.55 0.44 0.70 0.14 0.86 0.78 0.23 0.69 0.48 0.35 0.69 0.70 0.41 0.53 0.65 0.43 0.55 0.44 0.86 0.78 0.69 0.00 J L M N 0 P Q R 1 2 3 4 A B B C D E F G . SE Foods (Exercise 7.4a in the textbook by Baker, 3rd edition or exercise 7.7a in the 2nd edition) , The optimal objective value should be $20,862. 5 Shipping Cost (per carton) 6 7 8 9 10 11 12 13 14 Atl Bir Col Warehouse Lul s s Mem Nash Orl Atl $0.00 $0.15 $0.21 $0.42 $0.38 $0.25 $0.43 Bir $0.15 $0.00 $0.36 $0.36 $0.26 $0.19 $0.55 Col $0.21 $0.36 $0.00 $0.50 $0.62 $0.44 $0.44 Jac $0.40 $0.25 $0.60 $0.59 $0.21 $0.41 $0.70 Distribution Centers Jul Lul Mem $0.31 $0.42 $0.38 $0.46 $ $0.36 $0.26 $0.30 $0.50 $0.62 $0.73 $0.00 $0.38 $0.69 $0.38 $0.00 $0.56 $0.17 $0.21 $0.14 $0.86 $0.78 Mia $0.66 $0.75 $0.64 $1.09 $1.00 $0.91 $0.23 Nash $0.25 $0.19 $0.44 $0.17 $0.21 $0.00 $0.69 NewO $0.48 $0.35 $0.69 $0.70 $0.41 $0.53 $0.65 On $0.43 $0.55 $0.44 $0.86 $0.78 $0.69 $0.00 fixedoost $3,600 $3,600 $3.600 $3,600 $3,600 $3,600 $3,600 15 demand 5000 3000 1400 2200 8800 3000 7800 4400 6800 5800 2200 15000 WHoapacity Quantity Distribution Centers Jul Lul Mem Atl Bir Col Jac Mia Nash NewO Orl Build 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 All Bir Col Warehouse Lul s Mem Nash Orl totaloost 9