Hobart Inc., sells gas grills through its retail network across United States. The company currently operates 3
warehouse facilities located in Omaha, Detroit, and Tampa. The U.S. market is divided into four regions: North, East, South, and West. Table 1 below presents annual warehouse capacities, regional demand, and variable shipping cost per unit between warehouse locations and markets.
What is the optimal demand allocation for Hobart Inc. between its warehouses and markets?
Write down the explicit mathematical formulation (NOT the abstract forms) for this problem using the data given with Table 1. That is, define decision variables, objective function, and each of the required constraints using data in Table 1.