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Having Trouble building the linear model for question below.

Build a model to minimize the transportation cost of a logistics system that will deliver

skateboards from the factories to the distribution centers and from the distribution

centers to the retailers. What is the optimal production strategy and shipping pattern

for Sports of All Sorts? What is the minimum attainable transportation cost?

Sports of All Sorts is considering expansion of the Iowa DC capacity to 800 units per

week. The annual amortized cost of expansion is $40,000. Should the company expand

the Iowa DC capacity so that it can process 800 skateboards per week? (Assume 50

operating weeks per year.)

Shipping Costs {$ per skateboard] Factfl [TIRES Iowa Maryland Idaho ArkansasDetail $25.11} $25.00 $35.00 $40.00Lass Angcles $35.00 $45.00 $35.00 $42.50Austin $40.00 $40.00 $42.50 $32.50RetailerflCs Iowa Maryland Idalm ArkansasJust 3111:3113 $30.00 $20.00 $35.00 $22.50311115 ’N Stuff $22.50 $32.50 $40.00 $25.00 The. Spat-l3 Dude $30.00 $40.00 $32.50 $42.50

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