An Electronic Company Is Considering Opening Warehouses in New York,Los

question 70

Essay

An electronic company is considering opening warehouses in New York,Los Angeles,Madison,and Tampa.Each warehouse can ship 125 units per week.The weekly fixed cost for keeping each warehouse open is $500 for New York,$600 for Los Angeles,$400 for Madison,and $200 for Tampa.Region 1 of the country requires 90 units per week,region 2 requires 80 units per week,and region 3 requires 50 units per week.The costs (including production and shipping costs)of sending one unit from a plant to a region are shown in the table below.
Show how the company can meet weekly demands at a minimum cost,subject to the above information and the following restrictions: If the New York warehouse is opened,then Los Angeles must be opened. At most two warehouses can be opened. Either the Tampa or the Los Angeles warehouses must be opened.

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Definitions:

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