Optimal location for oliveira two distribution centers


Please illustrate all work, use excel and identify the value and units measured.

Location Problem with Two Sites. Oliveira Office Supply has a large retail system consisting of 12 stores spread around the country, often in direct competition with Kilroy. However, managers at Oliveira have decided to use two national distribution centers. When Oliveira's stores are mapped on the same grid as Kilroy's, the store locations occur at the coordinates listed in the following table. There is also data to indicate how many trips are made annually to each store.

a. Find the optimal location for Oliveira's two distribution centers.

b. What is the optimal value of the objective function.

Coordinates Coordinates Coordinates Trips
Site (k) Xk Yk Nk
1 2 96 21
2 5 41 12
3 20 10 20
4 44 48 15
5 60 58 27
6 100 4 8
7 122 94 21
8 138 80 16
9 150 40 10
10 170 18 18
11 182 2 25
12 190 56 14

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Microeconomics: Optimal location for oliveira two distribution centers
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