Ekin Shoes is coordinating the shipments that happen across itssupply chain and determining where to build new distributioncenters. The chain starts with shoe factories outside of the UnitedStates. The shoes are then put on ships for transfer to one the USports. From the ports the shoes are shipped to one regionaldistribution center. The distribution centers then disburse theshoes to smaller warehouses for distribution to the retailers. Ekinhas determined that the factories, ports and warehouses will remainthe same for the next year, but the locations of the distributioncenters will be newly decided by choosing between five possiblelocations. The five locations have different lease amounts for nextmonth.
Shoe Factories | Ports | Possible Distribution Center Locations | Warehouses |
Brazil | Los Angeles | Atlanta | Chattanooga |
Argentina | San Diego | Las Vegas | Denver |
China | Baltimore | St. Louis | Minneapolis |
Mexico | New Orleans | Indianapolis | Seattle |
Ukraine | | Philadelphia | Boston |
| | | Dallas |
The file “Ekin Shoes” contains the costs breakdowns forproducing the shoes at the factories and transferring them acrosseach part of the supply chain. The transfer costs are given in$1000s per container. The distribution center lease costs are in$1000s. The demands at each warehouse and the capacities of allother facilities are also given. Find the minimum total costsolution for transporting the shoes from factories towarehouses.
FIle
| Production andtransfer costs for shoe factories and ports per intermodalcontainer ($1000s) | | | |
| Los Angeles | San Diego | Baltimore | New Orleans | Capacity | | | |
| Brazil | $ 23.00 | $ 21.00 | $ 15.00 | $ 16.00 | | 170 | | | | |
| Argentina | $ 24.00 | $ 25.00 | $ 19.00 | $ 19.00 | | 570 | | | | |
| China | $ 19.00 | $ 21.00 | $ 27.00 | $ 29.00 | | 410 | | | | |
| Mexico | $ 27.00 | $ 24.00 | $ 11.00 | $ 5.00 | | 480 | | | | |
| Ukraine | $ 32.00 | $ 32.00 | $ 9.00 | $ 13.00 | | 250 | | | | |
| | | | | | | | | | |
| Transfer costs for ports andDCs per intermodal container ($1000s) | | | | | |
| Atlanta | Las Vegas | St. Louis | Indianapolis | Philadelphia | Capacity | | |
| Los Angeles | $ 10.00 | $ 6.00 | $ 7.50 | $ 9.00 | $ 12.00 | | 500 | | | |
| San Diego | $ 11.00 | $ 5.00 | $ 8.50 | $ 10.00 | $ 11.00 | | 500 | | | |
| Baltimore | $ 8.00 | $ 13.00 | $ 10.00 | $ 7.00 | $ 3.00 | | 500 | | | |
| New Orleans | $ 4.00 | $ 9.00 | $ 6.60 | $ 5.00 | $ 8.00 | | 700 | | | |
| | | | | | | | | | |
| Transfer costs for DCs andwarehouses per intermodal container ($1000s) | | | | | |
| Chattanooga | Denver | Minneapolis | Seattle | Boston | Dallas | | Capacity | Lease Cost ($1000s) |
| Atlanta | $ 1.50 | $ 5.60 | $ 5.80 | $ 8.70 | $ 7.90 | $ 4.30 | | 1000 | $ 4,413.00 | |
| Las Vegas | $ 4.80 | $ 2.20 | $ 4.00 | $ 4.30 | $ 10.10 | $ 6.50 | | 1000 | $ 6,430.00 | |
| St. Louis | $ 2.40 | $ 2.50 | $ 2.70 | $ 7.70 | $ 8.20 | $ 3.90 | | 1000 | $ 4,808.00 | |
| Indianapolis | $ 2.20 | $ 5.00 | $ 3.10 | $ 10.30 | $ 6.30 | $ 4.70 | | 1000 | $ 5,388.00 | |
| Philadelphia | $ 4.60 | $ 9.60 | $ 7.00 | $ 12.90 | $ 1.40 | $ 5.30 | | 1000 | $ 4,881.00 | |
| | | | | | | | | | |
| Demand | 225 | 195 | 640 | 310 | 185 | 290 | | | | |
