Reference no: EM13954277
The Heartland Distribution Company is a food warehouse and distributor that has a contract with a grocery store chain in several Midwest and Southeast cities. The company wants to construct new warehouses/distribution centers in some of the cities it services to serve the stores in those cities plus all the other stores in the other cities that don't have distribution centers. A distribution center can effectively service all stores within a 300-mile radius. The company also wants to limit its fixed annual costs to under $900,000. The company wants to build the minimum number of distribution centers possible.
The following table shows the cities within 300 miles of every city and the projected fixed annual charge for a distribution center in each city:
City Annual Fixed Charge ($1,000s) Cities Within 300 Miles
1. Atlanta $276 Atlanta, Charlotte, Nashville
2. Charlotte 253 Atlanta, Charlotte, Richmond
3. Cincinnati 394 Cincinnati, Cleveland, Indianapolis, Louisville, Nashville, Pittsburgh
4. Cleveland 408 Cincinnati, Cleveland, Indianapolis, Pittsburgh
5. Indianapolis 282 Cincinnati, Cleveland, Indianapolis, Louisville, Nashville, St. Louis
6. Louisville 365 Cincinnati, Indianapolis, Louisville, Nashville, St. Louis
7. Nashville 268 Atlanta, Cincinnati, Indianapolis, Louisville, Nashville, St. Louis
8. Pittsburgh 323 Cincinnati, Cleveland, Pittsburgh, Richmond
9. Richmond 385 Charlotte, Pittsburgh, Richmond
10. St. Louis 298 Indianapolis, Louisville, Nashville, St. Louis
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