Due to Increased Sales, a Company Is Considering Building Three

question 28

Essay

Due to increased sales, a company is considering building three new distribution centers (DCs) to serve four regional sales areas. The annual cost to operate DC 1 is $500 (in thousands of dollars). The cost to operate DC 2 is $600 (in thousands of dollars.). The cost to operate DC 3 is $525 (in thousands of dollars). Assume that the variable cost of operating at each location is the same, and therefore not a consideration in making the location decision.
The table below shows the cost ($ per item) for shipping from each DC to each region.
Region
$$\begin{array} { | c | c | c | c | c | } \hline \mathrm { DC } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \\\hline 1 & 1 & 3 & 3 & 2 \\\hline 2 & 2 & 4 & 1 & 3 \\\hline 3 & 3 & 2 & 2 & 3 \\\hline\end{array}$$
The demand for region A is 70,000 units; for region B, 100,000 units; for region C, 50,000 units; and for region D, 80,000 units. Assume that the minimum capacity for the distribution center will be 500,000 units.
Write the constraints for the 3 distribution centers.

---

Definitions:

Depressed Mood

A persistent feeling of sadness, hopelessness, or emptiness that affects an individual’s day-to-day function and quality of life.

Celebration of Life

An event designed to honor and remember the life of a deceased loved one, focusing on their life achievements, joy, and how they touched the lives of others.

Stages of Death

A conceptual framework outlining the biological or psychological phases an individual undergoes as they approach death, often including denial, anger, bargaining, depression, and acceptance.

Kubler Ross

Refers to Elisabeth Kübler-Ross, a psychiatrist known for her work on the five stages of grief: denial, anger, bargaining, depression, and acceptance.