This is a problem for my statistics class. They want us to use binary indicators or something, and it has to be Simplex LP using Excel Solver.

2. In order to conserve capital, STECO, a steel wholesaler, leases its regional warehouses. It currently has a candidate list of three warehouses it can lease. The cost per month to lease warehouse i is F; (See Figure 1). Also, warehouse i can load a maximum of S; trucks per month (See Figure 1). There are four sales districts, and the demand in district j is d; truckloads (See Figure 1). The average cost of sending a truck from warehouse i to district j is Cij, which are given in the spreadsheet STECO.xls. STECO wants to know which warehouses to lease and how many trucks to send from each warehouse to each district to satisfy demand at the cheapest cost. Note that STECO has to pay the leasing cost for a given warehouse only it it plans to dispatch from that warehouse. In other words, if STECO ships any trucks from a warehouse, the entire leasing fee must be paid. The optimal objective value should be 58430. Monthly Leasing Cost ($) Capacity (Truckloads) Demands (Truckloads) di(=100) FAC=7750) SA(=200) A d2l=90) Fe(=4000) SB(=250) B da(110) Fc=5500) Sc(=300) di(=60) Warehouses Sales Districts Figure 1: STECO problem parameters. 2. In order to conserve capital, STECO, a steel wholesaler, leases its regional warehouses. It currently has a candidate list of three warehouses it can lease. The cost per month to lease warehouse i is F; (See Figure 1). Also, warehouse i can load a maximum of S; trucks per month (See Figure 1). There are four sales districts, and the demand in district j is d; truckloads (See Figure 1). The average cost of sending a truck from warehouse i to district j is Cij, which are given in the spreadsheet STECO.xls. STECO wants to know which warehouses to lease and how many trucks to send from each warehouse to each district to satisfy demand at the cheapest cost. Note that STECO has to pay the leasing cost for a given warehouse only it it plans to dispatch from that warehouse. In other words, if STECO ships any trucks from a warehouse, the entire leasing fee must be paid. The optimal objective value should be 58430. Monthly Leasing Cost ($) Capacity (Truckloads) Demands (Truckloads) di(=100) FAC=7750) SA(=200) A d2l=90) Fe(=4000) SB(=250) B da(110) Fc=5500) Sc(=300) di(=60) Warehouses Sales Districts Figure 1: STECO problem parameters