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Problem 3

The administration of the SEVEN store chain is considering the alternative of installing a central warehouse in the city of Saltillo from which its main branches can be supplied. The approximate location of the branches is shown on the attached map. The flows between the central warehouse and each branch are: 2, 3, 3, 2, 4, 4, 4, 3, 2 and 5 trips per week, respectively. Assume that the rectilinear model is applicable.

a) Determine the optimal point to locate the warehouse.

b) If the new urban planning law prohibits the installation of this type of business within the first square of the city, where should the winery be installed?

Note: Make use of isocost curves and an integer solution. Note: The first square of the city is limited by the streets of Presidente Crdenas to the north, Ramos Arizpe-De la Fuente to the south, Abasolo to the east and Lpez Zertuche to the west.

c) The project manager observes that the branches are stratified into two regions; six branches to the north and four to the south. For this reason, he considers the alternative of installing two warehouses, one for each stratum.

d) If there is no flow between the two warehouses, he defines the optimal points where the warehouses should be installed.

e) If there is a flow of one trip per week between the two warehouses, develop a mathematical model to determine the optimal location of the two warehouses.