Sheet1Projected DemandMax Demand in Each zone1999200020012002Northwest320,000.00576,000.001,036,800.001,866,240.00Southwest200,000.00360,000.00648,000.001,166,400.00Upper Midwest160,000.00288,000.00518,400.00933,120.00Lower Midwest220,000.00396,000.00712,800.001,283,040.00Northeast350,000.00630,000.001,134,000.002,041,200.00Southeast175,000.00315,000.00567,000.001,020,600.001,425,000256500046170008,310,600.00Associated Cost MatrixNorthwestSouthwestUpper MidwestLower MidwestNortheastSoutheastSeattle22.53.5455.5Denver2.52.52.5344.5St. Louise3.53.52.52.533.5Atlanta4432.532.5Philadelphia4.5533.52.54Decision VariableNorthwestSouthwestUpper MidwestLower MidwestNortheastSoutheastTotalCost of Warehouse OperationsSeattle1,211,164788,8350.00.000.01999999SmallLargeDenver655,076377,565628,2250.000.01660866FixVarFixVarSt. Louise0.00.0304,895666,912898,0020.01869809Seattle3000000.25000000.2Atlanta0.00.00.0616,128487,1611,020,6002123889Denver2500000.24200000.2Philadelphia0.00.00.00.0656,0370.0656037St. Louise2200000.23750000.2Total1,866,24011664009331201283040204120010206008310600Atlanta2200000.23750000.2Philadelphia2400000.24000000.220000004000000Objective FunctionLocation/Type OutputWarehouse CostSmall WarehousLarge WarehouseFixedSeattle10300000Denver10250000St. Louise10220000Atlanta01375000Philadelphia10240000Variable CostSeattle399999.8Denver332173.2St. Louise373961.8Atlanta424777.8Philadelphia131207.4Total Warehouse Cost3047120Inventory Holding CostFixed475000Variable1371249Total Inventory Holding Cost1846249Transportation Cost20863499.55215874.875Total Cost10,109,244

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