OPERATIONS RESEARCH 2: Case 6_KreegerCompany

#6

The Kreeger Grocery Store chain has bout out a competing grocery store chain. However, it now has too many stores in close proximity to each other in certain cities. In Roanoke, the chain has 10 stores, and it does not want any stores closer than 2 miles to each other.

The monthly revenues ($1, 000s) from each store

A 127B 83C 165D 96E 112F 88G 135H 141I 117J 94

Store Monthly Revenue ($1, 000s)

Map showing the general proximity to the stores

Decision VariablesA = number of stores to open in store no.1B = number of stores to open in store no.2C = number of stores to open in store no.3D = number of stores to open in store no.4E = number of stores to open in store no.5F = number of stores to open in store no.6G = number of stores to open in store no.7H = number of stores to open in store no.8I = number of stores to open in store no.9J = number of stores to open in store no.10

Objective FunctionTo MAXIMIZE MONTHLY REVENUE

= $127A+ $83B+ $165C+ $96D+ $112E+$88F+ $135G+$141H+ $ 117I+ $ 94J

A 127B 83C 165D 96E 112F 88G 135H 141I 117J 94

Store Monthly Revenue ($1, 000s)

Constraints

A+C<=1A+B+D<=1

D+E+F<=1F+G+H<=1F+I<=1I+J<=1

H+J<=1All variables >=0, int

A B C D E F G H I J0 1 1 0 1 0 0 1 1 0 OPEN OPEN OPEN OPEN OPEN

The Kreeger should open stores B,C,E,H, and I to maximize revenue by $ 618,000.

B

CE H

I

AD

FG

J

N,

Thank You!

Prepared by:

Engr. Budz Lagela