Question: SC Consulting , a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 16 states listed in the table below. There are four (4) potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,428; in Tulsa $131,230; in Denver $140,000; and in Seattle $145,000. The expected number of trips that will be taken to each state along with the associated travel costs from each potential site (variable costs) are shown below in the table.

Each consultant is expected to take 25 trips each year.

a.) If there are no restriction on the number of consultants at a site and the goal is to minimize costs, where should the home offices be located and how many consultants should be assigned to each office? What are the total annual costs for each location in terms of fixed costs and travel costs (variable costs)?

HINT: Lay out the decision variables for Solver vertically. Assume 25 trips per consultant. Use Roundup function in excel.

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