Question: The U . S . Cable Company uses a distribution system with five distribution centers and Los Angeles 2 1 . eight customer zones. Each
The US Cable Company uses a distribution system with five distribution centers and
Los
Angeles
eight customer zones. Each customer zone is assigned a sole source supplier; each cus
tomer zone receives all of its cable products from the same distribution center. In an effort
to balance demand and workload at the distribution centers, the companys vice president
of logistics specified that distribution centers may not be assigned more than three cus
tomer zones. The following table shows the five distribution centers and cost of supplying
each customer zone in thousands of dollars:
Customer Zones
: Kansas
Chicago Columbus Atlanta Newark City Denver Dallas
oe ZL
oy
a Determine the assignment of customer zones to distribution centers that will minimize
cost
b Which distribution centers, if any, are not used?
c Suppose that each distribution center is limited to a maximum of two customer zones.
How does this constraint change the assignment and the cost of supplying customer
zones
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