Logistics, distribution and warehousing network

optimization part-1
Where are the customer coming from
Where should be the central retail outlet
Customer flow
Freight cost

High service level increase cost

Increase facilities increase overhead cost
Outbound cost serving customers serving customers from DS center
Inbound cost more DS more truck more cost

Linear programing optimal profit

Decision variablesnumber of unit you will be producing for each products
Per unit profit for each profit
After running the optimization you will know how many units you will be producing
After that formulate objective function
How many unit multiply per unit profittotal profit
Every org has limited capacity man power, hour, capacitysize of the production plant
After Determine constraints
The result should not be negative

Example
The company has 5 units of milk and 12 units of Choco
Unit A require- 1 milk and 2 Choco
Unit B require- 1 milk and 3 Choco
On sale company made profit $6 unit par A sold/ $5 unit per B sold
Maximize profit how many unit A and B produce

Let assume unit X= A and Y=B

6 X+ 5 Y= total profit
Milk (X x 1) + ( Y x 1) <= 5
Choco ( X x 2) + ( Y x 3) <= 12