No of warehouses Trans cost Inv cost

1 41,409,628.00 1500000
2 25,989,764.00 2121320.3436
3 16,586,090.00 2598076.2114
4 11,368,330.00 3000000
5 9,418,329.00 3354101.9662
6 8,032,399.50 3674234.6142
7 7,478,425.00 3968626.9666
8 2,260,661.25 4242640.6871
9 948,686.69 4500000
10 0 4743416.4903

Prep

# Warehouses Transportation Cost Inventory

1 41,409,628.00 6000000
2 25,989,764.00 8485281.3742
3 16,586,090.00 10392304.845
4 11,368,330.00 12000000
5 9,418,329.00 13416407.865
6 8,032,399.50 14696938.457
7 7,478,425.00 15874507.866
8 2,260,661.25 16970562.748
9 948,686.69 18000000
10 - 18973665.961
W/H cost T Cost

2000000 44909628
4000000 32111084.3436
6000000 25184166.2114
8000000 22368330 Optimal
10000000 22772430.9662
12000000 23706634.1142
14000000 25447051.9666
16000000 22503301.9371
18000000 23448686.69
20000000 24743416.4903

ICC Warehouse FC Total Cost

1,500,000.00 2000000 44,909,628.00
2,121,320.34 4000000 32,111,084.34
2,598,076.21 6000000 25,184,166.21
3,000,000.00 8000000 22,368,330.00
3,354,101.97 10000000 22,772,430.97
3,674,234.61 12000000 23,706,634.11
3,968,626.97 14000000 25,447,051.97
4,242,640.69 16000000 22,503,301.94
4,500,000.00 18000000 23,448,686.69
4,743,416.49 20000000 24,743,416.49
Caselet 4 p=2

j
cij 1 2
1 4 12
2 2 10
3 3 4
4 6 5
5 18 12
6 14 2
7 20 30
8 24 12

Step 2 Block 1

j
cij 1 2
1 4 12
2 2 10
3 3 4
4 6 5
5 18 12
6 14 2
7 20 30
8 24 12

Step 3 Put 1 back and block 2

j
cij 1 2
1 4 12
2 2 10
3 3 4
4 6 5
5 18 12
6 14 2
7 20 30
8 24 12
Step 3 Block 3

j
cij 1 2
1 4 12
2 2 10
3 3 4
4 6 5
5 18 12
6 14 2
7 20 30
8 24 12

Step 4 Block 4

j
cij 1 2
1 4 12
2 2 10
3 3 4
4 6 5
5 18 12
6 14 2
7 20 30
8 24 12

lowest increase in blocking 2 = 140

new baseline = 2620 2620

Step 1 Block 1

j
cij 1 3
1 4 20
2 2 25
3 3 16
4 6 9
5 18 7
6 14 4
7 20 2
8 24 6
Step 2 Block 3

j
cij 1 3
1 4 20
2 2 25
3 3 16
4 6 9
5 18 7
6 14 4
7 20 2
8 24 6

Step 3 Block 4

j
cij 1 3
1 4 20
2 2 25
3 3 16
4 6 9
5 18 7
6 14 4
7 20 2
8 24 6

Caselet 6- Use Logware transportation

Drop 1,2,3, etc by adding huge cost say 999

Transportation FC
All 213 800
1,3 255 500
1,2 299999 500
2,3 280 600
 j
3 4 di row min
20 6 100 4 400
25 10 50 2 100
16 14 120 3 360
9 2 80 2 160
7 3 200 3 600
4 9 70 2 140
2 11 60 2 120
6 22 100 6 600

Sum 2480

j
3 4 di row min
20 6 100 6 600
25 10 50 10 500
16 14 120 4 480
9 2 80 2 160
7 3 200 3 600
4 9 70 2 140
2 11 60 2 120
6 22 100 6 600

Sum 3200

j
3 4 di row min
20 6 100 4 400
25 10 50 2 100
16 14 120 3 360
9 2 80 2 160
7 3 200 3 600
4 9 70 4 280
2 11 60 2 120
6 22 100 6 600

Sum 2620
 j
3 4 di row min
20 6 100 4 400
25 10 50 2 100
16 14 120 3 360
9 2 80 2 160
7 3 200 3 600
4 9 70 2 140
2 11 60 11 660
6 22 100 12 1200

Sum 3620

j
3 4 di row min
20 6 100 4 400
25 10 50 2 100
16 14 120 3 360
9 2 80 5 400
7 3 200 7 1400
4 9 70 2 140
2 11 60 2 120
6 22 100 6 600

Sum 3520

Remove column 2 from the matrix

j
4 di row min
6 100 6 600
10 50 10 500
14 120 14 1680
2 80 2 160
3 200 3 600
9 70 4 280
11 60 2 120
22 100 6 600
 Sum 4540

j
4 di row min
6 100 4 400
10 50 2 100
14 120 3 360
2 80 2 160
3 200 3 600
9 70 9 630
11 60 11 660
22 100 22 2200

Sum 5110

j
4 di row min
6 100 4 400
10 50 2 100
14 120 3 360
2 80 6 480
3 200 7 1400
9 70 4 280
11 60 2 120
22 100 6 600

Sum 3740

Total
1013
755
300499 3 cannot be dropped As demand supply mismatch
880
increase from base line
720

increase from base line

140
Least increment over baseline.. Hence Remove column 4

Hence 2 and 4 will be the final warehouses