INDE 4315 Homework 2
Instructor: Dr. Eylem Tekin
Due on: March 10, 2016
SC Consulting, a supply chain consulting firm, must decide on the location of its home offices.
Its clients are located primarily in Washington, Oregon, California, Idaho and Nevada. There
are three potential sites for home offices: Los Angeles, Tulsa, and Denver. The annual fixed
cost of locating an office in Los Angeles is $165,000, Tulsa is $130,000, and Denver is
$140,000. The expected number of trips to each state each year, and the travel costs from each
potential site are given in the following table.
Each consultant is expected to take at most 25 trips each year.
Assume that there are no restrictions on the number of consultants assigned to a home
office (site). The goal is to minimize the sum of fixed costs and annual travel costs by
deciding where the home offices should be located and how many consultants should
be assigned to each home office. How would you model this problem using a mixed
Define the decision variables clearly.