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.

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Definitions:

Carbon Dioxide

A transparent, smell-free gas that comes from burning carbon and compounds with carbon in them and is produced during respiration, which plants absorb in the photosynthesis process.

Preparatory Reaction

The phase in cellular respiration where pyruvate is converted into acetyl CoA before entering the citric acid cycle.

Glycolysis

Glycolysis is a metabolic pathway that converts glucose into pyruvate, releasing energy and pyruvic acid as end products.

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane, creating a gradient used to produce ATP.