City Annual Fixed Charge ($1,000s) $276 1. Atlanta 2. Charlotte 253 3. Cincinnati 394 4. Cleveland 408 5. Indianapolis 282 6. Louisville 365 7. Nashville 268 8. Pittsburgh 323 9. Richmond 385 10. St. Louis 298 Cities Within 300 Miles Atlanta, Charlotte, Nashville Atlanta, Charlotte, Richmond Cincinnati, Cleveland, Indianapolis, Louisville, Nashville, Pittsburgh Cincinnati, Cleveland, Indianapolis, Pittsburgh Cincinnati, Cleveland, Indianapolis, Louisville, Nashville, St. Louis Cincinnati, Indianapolis, Louisville, Nashville, St. Louis Atlanta, Cincinnati, Indianapolis, Louisville, Nashville, St. Louis Cincinnati, Cleveland, Pittsburgh, Richmond Charlotte, Pittsburgh, Richmond Indianapolis, Louisville, Nashville, St. Louis B) The Heartland Distribution Company is a food warehouse and distributor that has a contract with a grocer 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 distribution 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 annual charge for a distribution center in each city: a. Formulate an integer programming model for this problem and solve it by using the computer. b. What is the solution if the cost constraint is removed from the original model formulation? What is the difference in cost?
City Annual Fixed Charge ($1,000s) $276 1. Atlanta 2. Charlotte 253 3. Cincinnati 394 4. Cleveland 408 5. Indianapolis 282 6. Louisville 365 7. Nashville 268 8. Pittsburgh 323 9. Richmond 385 10. St. Louis 298 Cities Within 300 Miles Atlanta, Charlotte, Nashville Atlanta, Charlotte, Richmond Cincinnati, Cleveland, Indianapolis, Louisville, Nashville, Pittsburgh Cincinnati, Cleveland, Indianapolis, Pittsburgh Cincinnati, Cleveland, Indianapolis, Louisville, Nashville, St. Louis Cincinnati, Indianapolis, Louisville, Nashville, St. Louis Atlanta, Cincinnati, Indianapolis, Louisville, Nashville, St. Louis Cincinnati, Cleveland, Pittsburgh, Richmond Charlotte, Pittsburgh, Richmond Indianapolis, Louisville, Nashville, St. Louis B) The Heartland Distribution Company is a food warehouse and distributor that has a contract with a grocer 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 distribution 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 annual charge for a distribution center in each city: a. Formulate an integer programming model for this problem and solve it by using the computer. b. What is the solution if the cost constraint is removed from the original model formulation? What is the difference in cost?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:City
Annual Fixed Charge
($1,000s)
$276
1. Atlanta
2. Charlotte
253
3. Cincinnati
394
4. Cleveland
408
5. Indianapolis
282
6. Louisville
365
7. Nashville
268
8. Pittsburgh
323
9. Richmond
385
10. St. Louis
298
Cities Within 300 Miles
Atlanta, Charlotte, Nashville
Atlanta, Charlotte, Richmond
Cincinnati, Cleveland, Indianapolis, Louisville,
Nashville, Pittsburgh
Cincinnati, Cleveland, Indianapolis, Pittsburgh
Cincinnati, Cleveland, Indianapolis, Louisville,
Nashville, St. Louis
Cincinnati, Indianapolis, Louisville,
Nashville, St. Louis
Atlanta, Cincinnati, Indianapolis, Louisville,
Nashville, St. Louis
Cincinnati, Cleveland, Pittsburgh, Richmond
Charlotte, Pittsburgh, Richmond
Indianapolis, Louisville, Nashville, St. Louis
Transcribed Image Text:B) The Heartland Distribution Company is a food warehouse and distributor that has a
contract with a grocer 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 distribution 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 annual charge for
a distribution center in each city: a. Formulate an integer programming model for this
problem and solve it by using the computer. b. What is the solution if the cost constraint is
removed from the original model formulation? What is the difference in cost?
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