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Question 2 SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 5 states listed below. There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,000, Tulsa is $131,000, Denver is $140,000, and Seattle is $145,000. The expected number of trips to each state and the travel costs from each potential site are shown below. Each consultant is expected to take at most 40 trips each year. If at most 3 consultants are to be assigned to a home office, where should the offices be set up? How many consultants should be assigned to each office? What is the annual cost of this network? Travel cost (S)

Question 2 SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 5 states listed below. There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,000, Tulsa is $131,000, Denver is $140,000, and Seattle is $145,000. The expected number of trips to each state and the travel costs from each potential site are shown below. Each consultant is expected to take at most 40 trips each year. If at most 3 consultants are to be assigned to a home office, where should the offices be set up? How many consultants should be assigned to each office? What is the annual cost of this network? Travel cost (S)

Practical Management Science
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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Question 2 SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 5 states listed below. There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,000, Tulsa is $131,000, Denver is $140,000, and Seattle is $145,000. The expected number of trips to each state and the travel costs from each potential site are shown below. Each consultant is expected to take at most 40 trips each year. If at most 3 consultants are to be assigned to a home office, where should the offices be set up? How many consultants should be assigned to each office? What is the annual cost of this network? Washington Oregon California Idaho Nevada Los Angeles 150 150 75 150 100 Travel cost ($) Tulsa Denver 250 200 250 200 200 150 200 125 200 125 Seattle 25 75 125 125 150 Number of trips required 40 35 100 25 40 Tips: The limit number of consultants and the maximal number of the expected trips for each consultant determine the capacity of the home offices in each area. When you get the number of trips assigned to each office, then divided by 40 and you can get the required number of consultants.
Transcribed Image Text:Question 2 SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 5 states listed below. There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,000, Tulsa is $131,000, Denver is $140,000, and Seattle is $145,000. The expected number of trips to each state and the travel costs from each potential site are shown below. Each consultant is expected to take at most 40 trips each year. If at most 3 consultants are to be assigned to a home office, where should the offices be set up? How many consultants should be assigned to each office? What is the annual cost of this network? Washington Oregon California Idaho Nevada Los Angeles 150 150 75 150 100 Travel cost ($) Tulsa Denver 250 200 250 200 200 150 200 125 200 125 Seattle 25 75 125 125 150 Number of trips required 40 35 100 25 40 Tips: The limit number of consultants and the maximal number of the expected trips for each consultant determine the capacity of the home offices in each area. When you get the number of trips assigned to each office, then divided by 40 and you can get the required number of consultants.
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