Compute assignment of customer zones to distribution centers

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Reference no: EM13919101

The U.S. Cable Company uses a distribution system with five distribution centers and eight customer zones. Each customer zone is assigned a sole source supplier; each customer zone receives all of its cable products from the same distribution center. In an effort to balance demand and workload at the distribution centers, the company's vice president of logistics specified that distribution centers may not be assigned more than three cus- tomer zones. The following table shows the five distribution centers and cost of supplying each customer zone (in thousands of dollars):

DistributionCenters	Los Angeles	Chicago	Columbus	Atlanta	Newark	Kansas City	Denver	Dallas
Plano	70	47	22	53	98	21	27	13
Nashville	75	38	19	58	90	34	40	26
Flagstaff	15	78	37	82	111	40	29	32
Springfield	60	23	8	39	82	36	32	45
Boulder	45	40	29	75	86	25	11	37

a. Determine the assignment of customer zones to distribution centers that will minimize cost.

b. Which distribution centers, if any, are not used?

c. Suppose that each distribution center is limited to a maximum of two customer zones. How does this constraint change the assignment and the cost of supplying customer zones?

Reference no: EM13919101

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