Formulate and solve the location problem

Assignment Help Financial Management

Reference no: EM131316338

Coffa is a Sicilian distributor of canned tuna. It is interested in opening a new warehouse in the province of Siracusa. Avola and Buccheri are the two potential locations of the warehouse, shown by a preliminary analysis.

If the warehouse is located in Avola, the annual total facility cost is € 127 500, whereas if it is located in Buccheri, this cost is € 123 000. The goal is to supply, four days a week, all dealers located in the following cities: Syracuse, Augusta, Avola, Buccheri, Ferla, Lentini, Melilli, Noto, Pachino and Priolo. Due to the limited capacity of the vehicles, transport is carried out with a single trip from the warehouse to each of the cities listed above (door-to-door transport). The distances (in km) between the cities are listed in given Table.

Formulate and solve the location problem by assuming 200 working days in a year and a transport cost per km equal to € 0.95.

Furthermore, assume that it is possible to determine the warehouse location in an alternative way, by using the centre of gravity. To this end, use the Cartesian coordinates reported in the last two columns of given Table.

Table: Distances (in km) between the 10 cities and Avola and Bucchcri, respectively, as well as their Cartesian coordinate in the Coffa problem.
	Avola	Buccheri	Abscissa	Ordinate
Siracusa	25	55	7.8	7.7
Augusta	56	54	6.6	11.4
Avola	0	57	5.2	4.3
Buccheri	57	0	0.0	9.0
Ferla	52	12	1.7	8.9
Lentini	67	35	2.8	12.6
Melitti	45	36	5.0	10.2
Noto	9	45	4.0	3.9
Pachino	26	69	4.3	0.0
Priolo	38	59	6.1	9.6

According to this approach, the optimal warehouse location is that with the minimum Euclidean distance from the centre of gravity among the 10 cities (one can restrict the selection to the best three candidate cities by visually inspecting Figure).

700_Figure 5.jpg

Reference no: EM131316338

Questions Cloud

Formulate the location problem : Formulate the location problem by considering that each tasting stand will be supplied with a daily door-to-door connection,

Discuss the importance of interprofessional collaboration : Substantiate the importance of interprofessional collaboration within healthcare.Emphasize the impact interprofessional collaboration can have upon safe, effective, patient-centered care. Enable you an opportunity to CREATE A PROJECT that involve..

What is the probability of drawing three yellow chips : An urn contains seven blue and three yellow chips. If the drawing of chips is done with replacement, what is the probability of drawing three yellow chips?

Determine a constant coefficient difference equation : Test your filter and MATLAB code by filtering a length-45 input defined as x[n] = cos(πn/5) + δ[n - 30] - δ[n - 35]. Separately plot the results for N = 4, N = 8, and N = 12. Comment on the filter behavior.

Formulate and solve the location problem : Formulate and solve the location problem by assuming 200 working days in a year and a transport cost per km equal to € 0.95.

Discuss asymptotic and bibo stabilities for the systems : Discuss asymptotic and BIBO stabilities for the systems described by the following transfer functions assuming that the systems are controllable and observable

Review the healthy people 2020 objectives : Review the Healthy People 2020 objectives for the older adult. Of the objectives listed for the older adult, which do you feel is most important? Be sure to include examples and references to support your response.

Which would be the best strategy to improve this score : Read the Introductory Incident: The Leapfrog Group. Leapfrog scores health organizations based on the National Quality Forum's Safe practices for Better Healthcare: A Consensus Report. Leapfrog announced that the scores for Summer 2016 was publishe..

What best describes the facts behind the headline : A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market". The shortage resulted from a renewed interest in smoking cigars. What best describes the facts behind the headline?

User Account

All Pages