The RedBrand Company produces tomato products at three plants. These products can be shipped directly to their two customers or they can first be shipped to the companys two warehouses and then to the customers.
The cost of shipping (in thousands of dollars) between each pair of points is given below. A dash indicates that RedBrand cannot ship across that arc.
During the next 4 months the SureStep Shoe Company must meet (on time) the following demands for pairs of shoes: 3000 in month 1; 5000 in month 2; 2000 in month 3; and 1000 in month 4. At the beginning of month 1, 500 pairs of shoes are inventory, and SureStep has 100 workers. Each worker is paid $1500 per month and can work up to 160 hours a month before he or she receive overtime. (This amounts to about $9.38 per hour.) A worker can be forced to work up to 20 hours of overtime per month at an overtime rate of $13 per hour.
Western wants to determine the smallest number of hubs it will need to cover all of these cities, where a city is covered if it is within 1000 miles of at least one hub. The table below lists which cities are within 1000 miles of other cities.
WESTERN.XLS This file provides the setup to develop the model seen below.