A Company Wants to Locate a New Warehouse to Minimize

question 63

Essay

A company wants to locate a new warehouse to minimize the distance travelled by its delivery trucks. It has four stores and their coordinates are listed in the below.
$$\begin{array} { l c c } & \text { X-Coordinate } & \text {Y-Coordinate } \\ \hline \text { Store 1 } & 70 & 160 \\\text { Store 2 } & 60 & 90 \\\text { Store 3 } & 180 & 90 \\\text { Store 4 } & 150 & 120\end{array}$$ Formulate the objective function for this problem. Let X and Y represent the X, Y coordinates of the new warehouse.

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Definitions:

Efficient Production Process

A method of production that uses the least amount of resources to achieve the maximum output.

Resources And Technology

The combination of natural resources, human resources, and technology that firms use to produce goods and services.

Opportunity Cost

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.

Circular-flow Diagram

A visual construct of the financial ecosystem, detailing the exchange of dollars between households and firms via markets.