Data Given

Warehouse/
market

Delhi

Delhi
Kanpur
Jalandhar
Jaipur
Faridabad
Dehra Dun

Kanpur
0
480
375
260
30
235

Delhi
Distance from
central
warehouse
Weekly demand

480
0
855
520
450
575

Kanpur
2,050

1,855

40

16

Solut
Transportation Cost
DC Location
Delhi
Kanpur
Jalandhar
Jaipur
Faridabad
Dehradun

Warehouse to DC
Location
41000
37100
48300
40000
40400
44800

DC Location to
other cities
3804
9420
8708
6636
4112
6888

Constraints
Min. No. of DCs
reqd

Data Given
Jalandhar

Jaipur
375
855
0
635
405
365

Jalandhar

Faridabad
260
520
635
0
290
495

Jaipur

30
450
405
290
0
260

Faridabad

2,415

2,000

16

16

Dehra Dun
235
575
365
495
260
0

Dehra Dun
2,020
2,240

Cost Per Blanket

Central Sales Tax (CST)

Solution to Q1

Transportation Cost
On route /
Changing Cells

Total Transportation Weekly Demand of

Cost
DC location city
1
0
0
0
0
0

44804
46520
57008
46636
44512
51688

IF DC situated
then demand
catered

40
16
16
16
8
4

40
0
0
0
0
0
40

1 >=

100
1000
4%

Fixed
Cost

Fixed Cost
Transportation
Cost

CST Related Cost

@ 4%

2500
0
0
0
0
0

Total cost

2400
0
0
0
0
0

2500
0.2

Final Cost

Preferred Location

49704 Delhi
0
0
0
0
0

49704

48524.0002889466
Warehouse/ market

42
Delhi

Delhi
Kanpur
Jalandhar
Jaipur
Faridabad
Dehra Dun
Weekly demand

1
Kanpur

Jalandhar

0
480
375
260
30
235

480
0
855
520
450
575

375
855
0
635
405
365

40

16

16

Decision Variables

Demand Region

Supply Region
Delhi
Kanpur
Jalandhar
Jaipur
Faridabad
Dehra Dun

Delhi

Demand Met
Unmet Demand

Kanpur

Delhi
Kanpur
Jalandhar
Jaipur
Faridabad
Dehra Dun

Jalandhar

40
0
0
0
0

0
16
0
0
0

16
0
0
0
0

40

16

16

Excess Capacity
16
84
0
0
0
0
Objective Function
Cost

48524

1
Jaipur

1
Faridabad

1
Dehra Dun

100
Fixed Cost

260
520
635
0
290
495

30
450
405
290
0
260

235
575
365
495
260
0

2500
2500
2500
2500
2500
2500

16

100

Demand Region
Jaipur

Faridabad

Dehra Dun

DC open(1)/close(0)

16
0
0
0
0

8
0
0
0
0

4
0
0
0
0

1
1
0
0
0

16

Distance from central warehouse

CST
2%

2050
1855
2415
2000
2020
2240

Total Supply
84
16
0
0
0
0

Model when only 1 distribution center is required. (Select t

Distribution Center

Delhi

DROPDOWN
Distance from CW

Delhi
Kanpur
Jalandhar
Jaipur
Faridabad
Dehradun

2050
1855
2415
2000
2020
2240
Sub-Total

Variabl
Fixed
Transportatio
Total includin

ter is required. (Select the DC from cell C4 to see the changes in the various

Distance Transport. Cost

Unit Cost
CST Cost
(in km) (Rs. 0.2/km/unit) (Rs. 1000/unit) (4%/unit)
40
0
0
40000
0
16
480
1536
16000
640
16
375
1200
16000
640
16
260
832
16000
640
8
30
48
8000
320
4
235
188
4000
160
100
3804
2400
Variable Cost
Fixed Cost
Transportation Cost to DC
Total including Fixed Cost

Weekly demand

anges in the various costs)

Sum of Variable Cost in Rs.

(FC+TC+CC)
0
2176
1840
1472
368
348
6204
6204
2500
41000
49704