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?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 5 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman