PT Logistra has decided to use a quantitative method to solve the discrete location problem of the distribution center. They will consider factors such as transportation distance, construction costs, and customer service needs. PT Logistra has geographic coordinate data for their potential customer locations. Transportation costs between the distribution center and customers are calculated based on the Euclidean distance between the two points. The construction and operational costs of the distribution center are also taken into account. The main objective is to minimize total distribution and operational costs. Data: Distribution Center Locations Considered: A, B, C, D Transportation Costs (in thousand dollars): Distribution Center Customer 1 Customer 2 Customer 3 Customer 4 A 163 183 213 173 B 153 173 203 163 C 173 163 193 183 D 183 193 173 153 Distribution Center Construction Costs (in million dollar): A (500), B (550), C (480), D (600) Customer Service Needs: All customers must be able to be reached within a maximum distance of 200 km from the distribution center. Determine the total distribution and operational costs for PT Logistra. In your opinion, are there any other factors that need to be considered in choosing a distribution center location besides transportation and construction costs? What type of warehouse is suitable for the construction of the distribution center? Include a strong explanation related to the factors considered.
PT Logistra has decided to use a quantitative method to solve the discrete location problem of the distribution center. They will consider factors such as transportation distance, construction costs, and customer service needs. PT Logistra has geographic coordinate data for their potential customer locations. Transportation costs between the distribution center and customers are calculated based on the Euclidean distance between the two points. The construction and operational costs of the distribution center are also taken into account. The main objective is to minimize total distribution and operational costs. Data: Distribution Center Locations Considered: A, B, C, D Transportation Costs (in thousand dollars): Distribution Center Customer 1 Customer 2 Customer 3 Customer 4 A 163 183 213 173 B 153 173 203 163 C 173 163 193 183 D 183 193 173 153 Distribution Center Construction Costs (in million dollar): A (500), B (550), C (480), D (600) Customer Service Needs: All customers must be able to be reached within a maximum distance of 200 km from the distribution center. Determine the total distribution and operational costs for PT Logistra. In your opinion, are there any other factors that need to be considered in choosing a distribution center location besides transportation and construction costs? What type of warehouse is suitable for the construction of the distribution center? Include a strong explanation related to the factors considered.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section6.5: Set-covering And Location-assignment Models
Problem 34P
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Question
PT Logistra has decided to use a quantitative method to solve the discrete location problem of the distribution center. They will consider factors such as transportation distance, construction costs, and customer service needs. PT Logistra has geographic coordinate data for their potential customer locations. Transportation costs between the distribution center and customers are calculated based on the Euclidean distance between the two points. The construction and operational costs of the distribution center are also taken into account. The main objective is to minimize total distribution and operational costs.
Data:
- Distribution Center Locations Considered: A, B, C, D
- Transportation Costs (in thousand dollars):
Distribution Center Customer 1 Customer 2 Customer 3 Customer 4 A 163 183 213 173 B 153 173 203 163 C 173 163 193 183 D 183 193 173 153
- Distribution Center Construction Costs (in million dollar): A (500), B (550), C (480), D (600)
- Customer Service Needs: All customers must be able to be reached within a maximum distance of 200 km from the distribution center.
- Determine the total distribution and operational costs for PT Logistra.
- In your opinion, are there any other factors that need to be considered in choosing a distribution center location besides transportation and construction costs?
- What type of warehouse is suitable for the construction of the distribution center? Include a strong explanation related to the factors considered.
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