Question $3$: There are $8$ existing customers $(1,2,3,4,5,6,7$ and $8).7$ sites are being considered

for new warehouse location $($A$,$ B$,$ C$,$ D$,$ E$,$ F$,$ and G$).$

Each customer can be served by one warehouse only. The table next slide shows all the annual

costs for each alternative site. $8$pts

a$.$ Which warehouse optimized location should be selected if we want to build only one

warehouse?

b$.$ Which warehouses optimized locations should be selected if we want to build only two

warehouses?

c$.$ Which warehouses optimized location should be selected if we want to build three

warehouses? Note: In this part $($c$)$ it is considered that customer $3$ cannot be served

by warehouse B and customer $6$ cannot be served by warehouse D if warehouses B

and D were selected.

Customers$/$sites Warehouses

A B C D E F G

$1500500200090017002000700$

$2150020035050018001200500$

$33001200800200019007008000$

$430001800900350080010000950$

$5200030001800130017005001200$

$6120014002600140018002007000$

$77009001700300190012003000$

$8500080070080080018004000$

Fixed Cost $2000300035002500400050006500$