Essentials of Business Analytics 1st Edition by Jeffrey Camm,James Cochran,Michael Fry,Jeffrey Ohlmann ,David Anderson

Exercise 13

Let us consider again the data from the La Rosa tool bin location problem discussed in Section 10.3.
a. Suppose we know the average number of daily trips made to the tool bin from each production station. It seems as though we would want the tool bin closer to those stations with high numbers of average trips. Develop a new unconstrained model that minimizes the sum of the demand-weighted distance defined as the product of the demand (measured in number of trips) and the distance to the station.
b. Solve the model you developed in part a. Comment on the differences between the unweighted distance solution given in Section10.3 and the demand-weighted solution.