## Question:

The Heartland

Distribution Company is a food warehouse and distributor that has a contract with a grocery store chain in several Midwest and Southeast cities. The company wants to construct new warehouses/distribution centers in some of the cities it services to serve the stores in those cities plus all the other stores in the other cities that don't have

distribution centers. A

distribution center can effectively service all stores within a 300-mile radius. The company also wants to limit its fixed annual costs to under $900,000. The company wants to build the minimum number of

distribution centers possible.

The following table shows the cities within 300 miles of every city and the projected fixed annual charge for a

distribution center in each city:

a. Formulate an integer programming model for this problem and solve it by using the computer.

b. What is the solution if the cost constraint is removed from the original model formulation? What is the difference incost?

Distribution

The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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## Annual Fixed Charge ($1,000s) $276 394 Cities Within 300 Miles Atlanta, Charlotte, Nashville Atlanta, Charlotte, Richmond Cincinnati, Cleveland, Indianapolis, Louisville, Nashlle, Pittsburgh Cincinnati, Cleveland, Indianapolis, Pittsburgh Cincinnati, Cleveland, Indianapolis, Louisville, Nashville, St. Louis Cincinnati, Indianapolis, Louisville Nashville, St. Louis Atlanta, Cincinnati, Indianapolis, Louisville, Nashville, St. Louis Cincinnati, Cleveland, Pittsburgh, Richmond Charlotte, Pittsburgh, Richmond Indianapolis, Louisville, Nashville, St. Louis 3 2. Charlotte 3. Cincinnati 4. Cleveland 5. Indianapolis 282 6. Louisville 7. Nashville 268 8. Pittsburgh 9. Richmond 10. St. Louis 323 385