Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 16 Oct 2017 My Price 8.00

Heartland Distribution Company

  1. The Heartland Distribution Company is a food warehouse and distributor that has a contract with a grocery store chain in several Midwest and Southeast cities. The company wants to construct new warehouses/distribution centers in some of the cities it services to serve the stores in those cities plus all the other stores in the other cities that don’t have distribution centers. A distribu- tion center can effectively service all stores within a 300-mile radius. The company also wants to limit its fixed annual costs to under $900,000. The company wants to build the minimum number of distribution centers possible.

The following table shows the cities within 300 miles of every city and the projected fixed an- nual charge for a distribution center in each city:

Annual Fixed Charge

City ($1,000s) Cities Within 300 Miles

1. Atlanta

$276

Atlanta, Charlotte, Nashville

2. Charlotte

253

Atlanta, Charlotte, Richmond

3. Cincinnati

394

Cincinnati, Cleveland, Indianapolis,
   

Louisville, Nashville, Pittsburgh

4. Cleveland

408

Cincinnati, Cleveland, Indianapolis, Pittsburgh

5. Indianapolis

282

Cincinnati, Cleveland, Indianapolis, Louisville,
   

Nashville, St. Louis

6. Louisville

365

Cincinnati, Indianapolis, Louisville,
   

Nashville, St. Louis

7. Nashville

268

Atlanta, Cincinnati, Indianapolis, Louisville,
   

Nashville, St. Louis

8. Pittsburgh

323

Cincinnati, Cleveland, Pittsburgh, Richmond

9. Richmond

385

Charlotte, Pittsburgh, Richmond

10. St. Louis

298

Indianapolis, Louisville, Nashville, St. Louis

    1. Formulate an integer programming model for this problem and solve it by using the computer.

    2. What is the solution if the cost constraint is removed from the original model formulation? What is the difference in cost?

Answers

Maurice Tutor
(5)
Status NEW Posted 16 Oct 2017 12:10 PM My Price 8.00

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