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Mill Mountain Coffee Company currently operates 12 coffee shops in downtown Charlotte The company has been losing money and wants to downsize by closing some stores Its policy has been to saturate

Mill Mountain Coffee Company currently operates 12 coffee shops in downtown Charlotte. The company has been losing money and wants to downsize by closing some stores. Its policy has been to saturate the downtown area with stores so that one is virtually always in sight of a potential or current customer. However, the company"s new policy is to have enough stores so that each is within 5 minutes walking distance of another store. The company would also like to have annual operating costs of no more than $900,000.

The following table shows the coffee shops within 5 minutes walking distance of another shop and the average annual cost of the existing stores:

Store Location

Annual Average Operating Cost ($)

Stores Within 5 minutes Walking Distance

1. 3rd Street

456

3rd Street, Rose Street

2. 10th Street

207

10th Street, South Street, Broad Street,

3. South Street

139

South Street, Hill Street, 10th Street

4. Mulberry Avenue

246

Mulberry Avenue, Beamer Boulevard

5. Rose Street

177

Rose Street, 3rd Street, Church Street

6. Wisham Avenue

212

Wisham Avenue, Broad Street

7. Richmond Road

195

Richmond Road, Broad Street

8. Hill Street

170

Hill Street, South Street

9. 23rd Avenue

184

23rd Avenue, Wisham Avenue

10. Broad Street

163

Broad Street, Wisham Avenue, Richmond Road, 10th Street

11. Church Street

225

Church Street, Rose Street, Beamer Boulevard

12. Beamer Boulevard

236

Beamer Boulevard, Mulberry Avenue, Church Street

Formulate and solve a linear programming model that will select the minimum number of stores the company will need to achieve its new policy objective.

 

May 15 2020 View more View Less

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