Arcadia deliveries

Problem definition

Arcadia Deliveries wants to determine the best location for their warehouses to supply the different retail regions of their best customer. There are 5 possible warehouse locations and 10 different retail regions. The following table shows the capacity and operation costs of the possible warehouse locations:

Data

warehouse 1

warehouse 2

warehouse 3

warehouse 4

warehouse 5

capacity

1000

2000

3000

4000

5000

Operation costs

50

60

70

80

90

The following table contains the demand at each region:

Region

Demand

Region 1

100

Region 2

200

Region 3

300

Region 4

400

Region 5

500

Region 6

600

Region 7

700

Region 8

800

Region 9

900

Region 10

1000

And the following cost contains the transportation costs from warehouses to regions:

Region

Warehouse 1

Warehouse 2

Warehouse 3

Warehouse 4

Warehouse 5

1

42

36

58

47

32

2

73

56

73

78

38

3

38

41

80

88

69

4

59

70

77

94

51

5

51

92

79

88

80

6

38

98

57

64

96

7

86

53

86

58

44

8

48

92

40

100

71

9

62

60

30

31

63

10

43

43

48

63

55

Find the optimal location for warehouses and determine which warehouses are going to deliver to every retail location, knowing that the customer requires that a region is supplied from only one source

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