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 $1,200,000. 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 ($1ks)          Cities within 300 miles 1. Atlanta                                     270                               1, 2, 7 2. Charlotte                                 250                               1, 2, 9 3. Cincinnati                                410                               3, 4, 5, 6, 7, 8 4. Cleveland                                410                               3, 4, 5, 8 5. Indianapolis                             280                               3, 4, 5, 6, 7, 10 6. Louisville                                 360                                3, 5, 6, 7, 10 7. Nashville                                 290                               1, 3, 5, 6, 7, 10 8. Pittsburgh                               330                                3, 4, 8, 9 9. Richmond                               380                                2, 8, 9 10. St. Louis                               295                                5, 6, 7, 10 (a) Formulate an integer programming model for this problem

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
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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 $1,200,000. 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 ($1ks)          Cities within 300 miles
1. Atlanta                                     270                               1, 2, 7
2. Charlotte                                 250                               1, 2, 9
3. Cincinnati                                410                               3, 4, 5, 6, 7, 8
4. Cleveland                                410                               3, 4, 5, 8
5. Indianapolis                             280                               3, 4, 5, 6, 7, 10
6. Louisville                                 360                                3, 5, 6, 7, 10
7. Nashville                                 290                               1, 3, 5, 6, 7, 10
8. Pittsburgh                               330                                3, 4, 8, 9
9. Richmond                               380                                2, 8, 9
10. St. Louis                               295                                5, 6, 7, 10
(a) Formulate an integer programming model for this problem

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