Borachera is a major Spanish wine wholesaler currently operating two CDCs in Salamanca and Albacete, and a number of RDCs all over the Iberian peninsula.
In order to reduce its overall logistics cost, the company wishes to redesign its distribution logistics system by replacing its current RDCs with three (possibly new) RDCs.
Based on a preliminary qualitative analysis, an RDC should be located in the Castilla-Leon region, in Valladolid, Burgos or Soria. A second RDC should be located in the Extremadura region, in Badajoz, Plasencia or Caceres.
Finally, the third RDC should be located in the Argon region, in Barbastro, Saragossa or Teruel. Transport costs from RDCs to retailers are charged to retailers. Formulate the Borachera problem as an SCSE discrete location model.