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A chain of grocery stores has 5 stores and 3 warehouses. The following table gives the distances from each warehouse to the five stores.

 

 

St1

St2

St3

St4

St5

 

Warehouse

 

1

 

10

 

15

 

25

 

30

 

12

Warehouse

2

25

20

10

22

15

Warehouse

3

30

22

15

10

30

Assume the cost of shipping one pound of an item per mile is $0.02 or 2 cents. If the weights of items each store must receive per week are given by the row vector W = [10,000 25,000 15,000 30,000 20,000], rank the warehouses in terms of cost effectiveness of shipping items to all stores.

Microeconomics, Economics

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