Projected DemandMax Demand in Each zone 1999 2000 2001 2002Northwest 320,000.00 576,000.00 1,036,800.00 1,866,240.00 Southwest 200,000.00 360,000.00 648,000.00 1,166,400.00 Upper Midwest 160,000.00 288,000.00 518,400.00 933,120.00 Lower Midwest 220,000.00 396,000.00 712,800.00 1,283,040.00 Northeast 350,000.00 630,000.00 1,134,000.00 2,041,200.00 Southeast 175,000.00 315,000.00 567,000.00 1,020,600.00

8,310,600.00

Associated Cost MatrixNorthwest Southwest Upper MidwestLower Midwest Northeast

Seattle 2 2.5 3.5 4 5Denver 2.5 2.5 2.5 3 4St. Louise 3.5 3.5 2.5 2.5 3Atlanta 4 4 3 2.5 3Philadelphia 4.5 5 3 3.5 2.5

Decision VariableNorthwest Southwest Upper MidwestLower Midwest Northeast

Seattle 1,211,164 788,835 - - 0 Denver 655,076 377,565 628,225 - 0 St. Louise - - 304,895 666,912 898,002 Atlanta - - - 616,128 487,161 Philadelphia - - - - 656,037 Total 1866240 1166400 933120 1283040 2041200

Objective Function Location/Type OutputWarehouse Cost Small WarehoLarge WarehouseFixed Seattle 1 0 300000

Denver 1 0 250000St. Louise 1 0 220000Atlanta 0 1 375000Philadelphia 1 0 240000

Variable CostSeattle 399999.8Denver 332173.2St. Louise 373961.8Atlanta 424777.8Philadelphia 131207.4

Total Warehouse Cost 3047120

Inventory Holding Cost

Fixed 475000Variable 1371249Total Inventory Holding Cost 1846249

Transportation Cost 20863499.5 5215874.875

Total Cost 10,109,244

Southeast5.54.53.52.5

4

Southeast Total Cost of Warehouse Operations - 1999999 Small - 1660866 Fix - 1869809 Seattle 300000 1,020,600 2123889 Denver 250000 - 656037 St. Louise 220000

1020600 8310600 Atlanta 220000Philadelphi 240000

2000000

Cost of Warehouse OperationsLarge

Var Fix Var0.2 500000 0.20.2 420000 0.20.2 375000 0.20.2 375000 0.20.2 400000 0.2

4000000