Question:

$15\mathrm{.}1$

Centroid Method

Problem:

Dino's Bar & Grill wants to increase their market share in the Chicago land area. To do this they will need to open up a number of franchise locations

in the surrounding suburbs. They have decided to focus on the northern suburbs and have rented space in Northbrook, Lake Forest and Highland Park.

They have estimated how many customers will be visit each locaton and want to set up a warehouse to supply these locations.

The delivery van from the warehouse can hold and deliver up to

$261$ bundles of supplies per day. The cost of the truck and driver is

$$49$ hour.

The other option is to pay a service to deliver the bundles to the stores and they will charge

$0\mathrm{.}3$ cents per pair per mile.

After finding $2$ warehouses and finding the distances and drive time for each site, determine which warehouse is more cost effective to use with the service.

Determine how much the cost of the driver will be to use. Explain which method will be more cost effective for Dino's to use.

Use the tables below to fill in your calculated cost:

Use the following general formula$($s$)$ to determine the costs.

Cost of Company Truck $=$# min $*2*$ cost

Charge from Contractor $=$ Distance $*$ # of Bundles $*$

Warehouse$1$

# of Bundles

Town perweek Distance $($Miles$)$ Time$($Min$)$ Sub Contractor Cost Company Truck

Northbrook

Highland Park

Lake Forest

Total Cost

Warehouse$2$

Town

# of Bundles

Northbrook per week

Distance $($Miles$)$ Time$($in$)$ Sub Contractor Cost Company Truck

Highland Park

Lake Forest

Total Cost