Traveling distance while satisfying the travel restriction

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The firm identifies 30-locations throughout the area with 300-customer. A suvery shows the customer does not want to travel > 30 km for pickup so at least one Locker must be located within the radious of 30 km from each customer’s location. Assume each Locker costs $50,000 one time investment. And the travel distiance of each customer is equivalent to $100/km. The objective is to minimze the total cost of (1) Locker installation and (2) total traveling distance while satisfying the travel restriction.

Formulate an integer programming model for the given scenario.

Reference no: EM132301205

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