Determine how many widgets to stock in each warehouse


Assignment Task: A supplier of widgets has warehouses in Atlanta, Dallas, and Salt Lake City that she must stock. Unfortunately, these three warehouses to do have enough capacity to hold enough inventory to satisfy demand. Nonetheless, the supplier may rent space with additional capacity if needed. The capacities of the warehouses are given in the table below, and the total demand the supplier would like to satisfy is 60,000 widgets.

Warehouse Capacity

Atlanta 19,000

Dallas 23,000

Salt Lake City 17,000

The supplier's first goal is to stock at least 60,000 widgets in total over all of the warehouses to satisfy demand. Because Atlanta has the most expensive rental space and Salt Lake City has the cheapest rental space, her second, third, and fourth goals are to avoid renting additional space in Atlanta, Dallas, and Salt Lake City, respectively. Formulate but do not solve a goal program that determines how many widgets to stock in each warehouse. To save some time, you may refer to Atlanta, Dallas, and Salt Lake City as warehouses 1, 2, and 3, respectively.

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Basic Statistics: Determine how many widgets to stock in each warehouse
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