Noble Amazon sells books online. Management is trying to determine the best sites for the company's warehouses. The five potential sites under consideration are listed in the first column of the following table. Most of the sales come from customers in the United States. The average weekly demand from each region of the country, the average shipping cost from each warehouse site to each region of the country, the fixed cost per week of each warehouse if it is operated, and the maximum capacity of each warehouse (if it is operated) are shown in the following table. (a) Formulate the above case algebraically and on a spreadsheet as a mixed BIP model (b) Solve the spreadsheet model to determine which warehouse sites Noble Amazon should operate and how books should be distributed from each warehouse to each region of the country to minimize total cost. (c) Comment on the final results using your own words.

Noble Amazon sells books online. Management is trying to determine the best sites for the company's warehouses. The five potential sites under consideration are listed in the first column of the following table. Most of the sales come from customers in the United States. The average weekly demand from each region of the country, the average shipping cost from each warehouse site to each region of the country, the fixed cost per week of each warehouse if it is operated, and the maximum capacity of each warehouse (if it is operated) are shown in the following table. (a) Formulate the above case algebraically and on a spreadsheet as a mixed BIP model (b) Solve the spreadsheet model to determine which warehouse sites Noble Amazon should operate and how books should be distributed from each warehouse to each region of the country to minimize total cost. (c) Comment on the final results using your own words.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section: Chapter Questions

Problem 100P

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