The demands of the 5 markets are: HCMC (100.000), Long An (40.000), Tien Giang (30.000), Dong Nai (50.000) and Binh Duong (40.000). All the demands of the 5 markets must be served. The company wants to open P stores to serve the markets and maximize the total demand served within 80 km. The average service distance is no more than 100 km. The maximum distance that each store can serve is 120 km.
1. Establish the mathematical model (objective function and constraints with indexes) to solve the company problem.
2. If the company wants to open 2 stores, where should they be located? What is the total demand served within 80 km?
3. If the company wants to open 5 stores, where should they be located? What is the total demand served within 80 km?
4. What are the best 5 stores if the demand for each of the markets is equal to 65.000? How does this solution compare to (3).
5. Using the result of (3) to run the model 2 (in the book).