The following matrix represents a warehouse location problem. There is a fixed c
ID: 382681 • Letter: T
Question
The following matrix represents a warehouse location problem. There is a fixed cost for opening any of the five possible warehouses, and the cell entries for each customer are the variable costs of serving that customer from each potential warehouse. The variable costs include inbound transportation, outbound transportation, and warehouse operating costs for all the customer's requirements. The objective is to determine which warehouses should be used to serve all customers at minimum total cost. There are not capacity restrictions on the potential warehouses, but some warehouses cannot serve some customers Warehouses Fixed Customers Possible Cost 1 2 4 5 67 100 75 80 20+X 2X70 50 25 40 100 85 68 45 70 82 80 788135 50 3X66 55 65 45+X 76 7860 49 45 70 68 50 90 30+X5580 50 30+X5525+X76 90 Apply the add procedure to solve this warehouse location problem. Determine which warehouse should service each customer and indicate the total cost of vour solutionExplanation / Answer
Given Data
Total Cost Per Warehouse Per Customer After adding Fixed and Variable Costs
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The most efficient ways to assign warehouses to customers
Warehouses Fixed Cost Customers Customers Customers Customers Customers Customers Customers Possible Cost 1 2 3 4 5 6 7 A 75 80 56 72 70 50 100 B 25 70 82 80 78 81 35 C 40 100 85 50 108 66 55 D 68 45 65 81 76 78 60 E 66 55 61 76 90 49 45 F 70 68 50 90 66 55 80 50Related Questions
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