Regional Demand At SportStuff Growth rate 0.

Zone Demand (2000) Demand (2003)

Northwest 320,000 1,866,240
Southwest 200,000 1,166,400
Upper Midwest 160,000 933,120
Lower Midwest 220,000 1,283,040
Northeast 350,000 2,041,200
Southeast 175,000 1,020,600

Fixed and Variable Costs of Potential Warehouses

Small Warehouse Large Warehouse
Location Fixed Cost Variable Cost Fixed Cost Variable Cost
Seattle $ 300,000 $ 0.20 $ 500,000 $ 0.20
Denver $ 250,000 $ 0.20 $ 420,000 $ 0.20
St. Louis $ 220,000 $ 0.20 $ 375,000 $ 0.20
Atlanta $ 220,000 $ 0.20 $ 375,000 $ 0.20
Philadelphia $ 240,000 $ 0.20 $ 400,000 $ 0.20

UPS Charges per Shipment (4 units)

Location Northwest Southwest Upper Midwest Lower Midwest Northeast Southeast

Seattle $ 2.00 $ 2.50 $ 3.50 $ 4.00 $ 5.00 $ 5.50
Denver $ 2.50 $ 2.50 $ 2.50 $ 3.00 $ 4.00 $ 4.50
St. Louis $ 3.00 $ 3.00 $ 2.50 $ 2.50 $ 3.00 $ 3.50
Atlanta $ 4.00 $ 4.00 $ 3.00 $ 2.50 $ 3.00 $ 2.50
Philadelphia $ 4.50 $ 5.00 $ 3.00 $ 3.50 $ 2.50 $ 4.00
Quantity Shipped and Warehouse Size

Location Northwest Southwest Upper Midwest Lower Midwest Northeast Southeast

Seattle 1,866,240 1,166,400 933,120 0 0 0
Denver 0 - 0 0 0 -
St. Louis 0 0 0 1,283,040 2,041,200 1,020,600
Atlanta - 0 0 0 0 0
Philadelphia - 0 0 0 0 0
Demand 1866240 1166400 933120 1283040 2041200 1020600

Constraints
Demand
Northwest Southwest Upper Midwest Lower Midwest Northeast Southeast
- - 0 - - -
Capacity
Seattle 34,240
Denver (0)
St. Louis 3,655,160
Atlanta (0)
Philadelphia (0)

Cost
Transportation $ 5,704,425
Fixed $ 1,250,000
Variable $ 1,662,120
Inventory
Seattle $ 1,194,853
Denver $ 1
St. Louis $ 1,250,657
Atlanta $ 1
Philadelphia $ 1

Total $ 11,062,057
Small Warehouse Large Warehouse Quantity
0 1 3,965,760
0 0 0
0 2 4,344,840
0 0 0
0 0 0