Locating Warehouses. Southeastern Foods has hired you to analyze their distribution-system design. The company has 11 distribution centers, with monthly volumes as listed below. Seven of these sites can support warehouses, in terms of the infrastructure available, and are designated by (W). The monthly fixed cost for operating one of these warehouses is estimated at $3,600, although there is no capacity limit in their design. Southeastern could build warehouses at any of the designated locations, but its criterion is to minimize the total of fixed operating costs and variable shipment costs. The table below shows the cost per carton of shipping from any potential warehouse location to any distribution center. Using the evolutionary solver, find the minimum monthly cost for Southeastern Foods.
Locating Warehouses. Southeastern Foods has hired you to analyze their distribution-system design. The company has 11 distribution centers, with monthly volumes as listed below. Seven of these sites can support warehouses, in terms of the infrastructure available, and are designated by (W). The monthly fixed cost for operating one of these warehouses is estimated at $3,600, although there is no capacity limit in their design. Southeastern could build warehouses at any of the designated locations, but its criterion is to minimize the total of fixed operating costs and variable shipment costs. The table below shows the cost per carton of shipping from any potential warehouse location to any distribution center. Using the evolutionary solver, find the minimum monthly cost for Southeastern Foods.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Locating Warehouses. Southeastern Foods has hired you to analyze their distribution-system design. The company has 11 distribution centers, with monthly volumes as listed below. Seven of these sites can support warehouses, in terms of the infrastructure available, and are designated by (W).
The monthly fixed cost for operating one of these warehouses is estimated at $3,600, although there is no capacity limit in their design. Southeastern could build warehouses at any of the designated locations, but its criterion is to minimize the total of fixed operating costs and variable shipment costs. The table below shows the cost per carton of shipping from any potential warehouse location to any distribution center.
Using the evolutionary solver, find the minimum monthly cost for Southeastern Foods.
Transcribed Image Text:From City
Atlanta
Birmingham 0.15
Columbia
0.21
Louisville
0.42 0.36
Memphis
0.38
0.26
Nashville
0.25
0.19
Orlando
0.43
0.55
Atl
Bir
0.00 0.15
0.00
0.36
Col
0.21
0.36
0.00
0.50
0.62
0.44
0.44
Jac
0.40
0.25
0.60
0.59
0.21
0.41
0.70
Jvl
0.31
0.46
0.30
0.73
0.69
0.56
0.14
To City
Lvl
0.42
0.36
0.50
0.00
0.38
0.17
0.86
Mem
0.38
0.26
0.62
0.38
0.00
0.21
0.78
Mia
0.66
0.75
0.64
1.09
1.00
0.91
0.23
Nash
0.25
0.19
0.44
0.17
0.21
0.00
0.69
NewO
0.48
0.35
0.69
0.70
0.41
0.53
0.65
Orl
0.43
0.55
0.44
0.86
0.78
0.69
0.00
Transcribed Image Text:Center
Atlanta (W)
Birmingham (W)
Columbia (W)
Jackson
Jacksonville
Louisville (W)
Volume
5,000
3,000
1,400
2,200
8,800
3,000
Center
Memphis (W)
Miami
Nashville (W)
New Orleans
Orlando (W)
Volume
7,800
4,400
6,800
5,800
2,200
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