Total Demand 190000

Port Volume
Seattle 35% 66500
Los Angeles 65% 123500
190000

Port CBM $ VPC $

Seattle 5 332500
Los Angeles 5 617500
950000

Port Rail rate CBM/ mile Distance

Seattle 0.002 1870
Los Angeles 0.002 1620

Warehouse Volume Distance (From Kansas City)

Kansas City 20900 0
Cleveland 17100 800
New Jersey 24700 1200
Jacksonville 15200 1150
Chicago 22800 520
Greenville 15200 940
Memphis 17100 510
Dallas 22800 500
Los Angeles 34200 1620

Annual Cost 6420575

Transportation Cost $ Rate (Quality Check) Quality Check $
248710 3 199500
400140 3 370500
648850 570000

Rate $ Freight Cost $

0.025 0
0.025 342000
0.025 741000
0.025 437000
0.025 296400
0.025 357200
0.025 218025
0.025 285000
0.025 1385100
4061725
Total Demand 190000

Port Volume
Seattle 35% 66500
Los Angeles 65% 123500
190000

Port CBM $ VPC $

Seattle 5 332500
Los Angeles 5 617500
950000

Port Rail rate CBM/ mile Distance

Seattle 0.002 1140
Los Angeles 0.002 0

Distribution Centre Volume

Los Angeles 18% 34200
Kansas 82% 155800
190000

Distribution Centre Rail rate CBM/ mile Distance

Kansas 0.002 1620

Warehouse Volume Distance (From Kansas City)

Kansas City 20900 0
Cleveland 17100 800
New Jersey 24700 1200
Jacksonville 15200 1150
Chicago 22800 520
Greenville 15200 940
Memphis 17100 510
Dallas 22800 500
Los Angeles 0 1620

Annual cost (one time cost) 7083037

Annual cost (without one time cost) 5583037
 One time cost Per year
Opeartion Cost 1500000 350000

Transportation Cost $ Rate (Quality Check) Quality Check $

151620 5 332500
0 5 617500
151620 950000

Transportation cost $
504792

Rate $ Freight Cost $

0.025 0
0.025 342000
0.025 741000
0.025 437000
0.025 296400
0.025 357200
0.025 218025
0.025 285000
0.025 0
2676625
Warehouse Volume Distance (From Kansas City) Rate $
Kansas City 20900 0 0.025
Cleveland 17100 800 0.025
New Jersey 24700 1200 0.025
Jacksonville 15200 1150 0.025
Chicago 22800 520 0.025
Greenville 15200 940 0.025
Memphis 17100 510 0.025
Dallas 22800 500 0.025
Los Angeles 0 1620 0.025

Fixed cost for opening new distribution centre

Annual operations cost for running Los Angeles distribution centre
Total cost for distribution centres to the warehouses (without one time cost)
Total cost for distribution centres to the warehouses (one time cost)

Distribution Centre Volume Rate (Quality Check) Quality Check $

Los Angeles 18% 34200 5 171000
Kansas 82% 155800
Total 190000

Port Kansas Rate (Quality Check) Quality Check $

Seattle 66500
Los Angeles 89300
Total 155800 3 467400

Total cost 2126442

Total cost of upgraded network with changes 5153067
Total cost of upgraded network with changes 1077508
Freight Cost $
0
342000
741000
437000
296400
357200
218025
285000
0
2676625

1500000
350000
4526625
3026625

Port Volume Rate (Quality Check)

Seattle 35% 66500
Los Angeles 65% 123500
Total 190000 5

Volume Rail rate CBM/ mile Distance Transportation Cost $

66500 0.002 1870 248710
89300 0.002 1620 289332
538042
 Distributon Centre Cleveland New Jersey Jacksonville Chicago
Kansas City 20 30 28.75 13
Los Angeles 58.75 69.5 60.5 50.5
Supply 17100 24700 15200 22800

Distributon Centre Cleveland New Jersey Jacksonville Chicago

Kansas City 17100 24700 15200 22800
Los Angeles 0 0 0 0
Supply 17100 24700 15200 22800

Objective function 2676625

Quality Check $

950000
Warehouse Demand Warehouse
Greenville Memphis Dallas 1 Kansas City
23.5 12.75 12.5 155800 2 Cleveland
58 44.75 35.75 34200 3 New Jersey
15200 17100 22800 4 Jacksonville
5 Chicago
6 Greenville
Warehouse Demand 7 Memphis
Greenville Memphis Dallas 8 Dallas
15200 17100 22800 134900 9 Los Angeles
0 0 0 0 Total
15200 17100 22800
Average (Demand) Total Demand Percentage Rate $ Distance (From Kansas City)
20900 11% 0.025 0
17100 9% 0.025 800
24700 13% 0.025 1200
15200 8% 0.025 1150
22800 12% 0.025 520
15200 8% 0.025 940
17100 9% 0.025 510
22800 12% 0.025 500
34200 18% 0.025 1620
190000
Distance (From Los Angeles)
1620
2350
2780
2420
2020
2320
1790
1430
0
 Warehouse
Distributon Centre Cleveland New Jersey Jacksonville Chicago Greenville
Kansas City 20 30 28.75 13 23.5
Los Angeles 58.75 69.5 60.5 50.5 58
Seattle 60.25 60.25 74.75 51.5 73.75
Supply 17100 24700 15200 22800 15200

Warehouse
Distributon Centre Cleveland New Jersey Jacksonville Chicago Greenville
Kansas City 17100 24700 15200 22800 15200
Los Angeles 0 0 0 0 0
Seattle 0 0 0 0 0
Supply 17100 24700 15200 22800 15200

Objective function 2676625

Assumption
Operation cost 350000

Total cost 3026625

 Demand
Memphis Dallas Kansas Los Angeles 1
12.75 12.5 0 40.5 155800 2
44.75 35.75 40.5 0 34200 3
58.25 53.25 46.75 28.5 0 4
17100 22800 20900 34200 190000 5
6
7
Demand 8
Memphis Dallas Kansas Los Angeles 9
17100 22800 20900 0 155800
0 0 0 34200 34200
0 0 0 0 0
17100 22800 20900 34200 190000
Warehouse Average (Demand) Total Demand Percentage Rate $
Kansas City 20900 11% 0.025
Cleveland 17100 9% 0.025
New Jersey 24700 13% 0.025
Jacksonville 15200 8% 0.025
Chicago 22800 12% 0.025
Greenville 15200 8% 0.025
Memphis 17100 9% 0.025
Dallas 22800 12% 0.025
Los Angeles 34200 18% 0.025
Total 190000
Distance (From Kansas City) Distance (From Los Angeles) Distance (From Seattle)
0 1620 1870
800 2350 2410
1200 2780 2890
1150 2420 2990
520 2020 2060
940 2320 2950
510 1790 2330
500 1430 2130
1620 0 1140