Your Express Package Courier Company Is Drawing Up New Zones

question 29

Essay

Your express package courier company is drawing up new zones for the location of drop boxes for customers.The city has been divided into seven zones.You have targeted six possible locations for drop boxes.The list of the seven zones and which drop boxes could be reached easily from each zone is listed below. ​
Let x_i = 1 if drop box location i is used,0 otherwise.Develop a model to provide the smallest number of locations,but make sure that each zone is covered by at least two boxes.​

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Definitions:

Standard Amount

A benchmark or norm for measuring performance, often used in budgeting and accounting to set expected costs or outputs.

Variable Manufacturing Overhead

Refers to the production costs that change in proportion to the amount of production output, excluding direct materials and direct labor costs.

Direct Labor-Hours

The total hours worked directly on the manufacture of products, used for assigning labor costs to units of production.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, often used to monitor and control production costs.