Suppose that a company must service customers lying in an area of A square miles with n warehouses. Kolesar and Blum showed that when the warehouse(s) are located properly, the average distance between a warehouse and a customer is (????)12. Assume that it costs the company $90,000 per year to maintain a warehouse and $5,000,000 to build a warehouse. Also, assume that this $5,000,000 building cost is equivalent to incurring a cost of $500,000 per year indefinitely. The company fills 180,000 orders per year, and the shipping cost per order is $1.25 per mile. If the company serves an area of 120 square miles, how many warehouses (make it as an integer variable) should it have?
Suppose that a company must service customers lying in an area of A square miles with n warehouses. Kolesar and Blum showed that when the warehouse(s) are located properly, the average distance between a warehouse and a customer is (????)12. Assume that it costs the company $90,000 per year to maintain a warehouse and $5,000,000 to build a warehouse. Also, assume that this $5,000,000 building cost is equivalent to incurring a cost of $500,000 per year indefinitely. The company fills 180,000 orders per year, and the shipping cost per order is $1.25 per mile. If the company serves an area of 120 square miles, how many warehouses (make it as an integer variable) should it have?
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