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A manufacturer wants to construct warehouses in six different locations of the city to supply dry cells to his customers on time. The manufacturer wants to construct the minimum number of warehouses, to meet the market demand on time, such that at least one warehouse is within 40 miles from each other warehouse. The following table provides the distance (in miles) between the locations.
Formulate and solve an integer linear program that can be used to determine the minimum number of warehouses needed to be constructed. What are their locations?
Total Leverage
The combined effect of using both operating leverage and financial leverage on a company's earnings before interest and taxes (EBIT).
Variable Cost Ratio
The proportion of variable costs to sales or production output, indicating how variable costs change with changes in output.
Operating Costs
Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and salaries, but excluding costs related to production.
ROE
Return on Equity (ROE) is a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.
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