(Solved): Hint: All the slides in Lecture 7 matter, especially 18 to 21 (Center of Gravity), 23 to 26 (Break-E ...

Hint: All the slides in Lecture 7 matter, especially 18 to 21 (Center of Gravity), 23 to 26 (Break-Even Analysis, 28 -29 (Network Flow Model)Problem 1: 10 pointsThe Davis national drugstore chain prefers to operate one outlet in a town that has four major marketsegments. The number of potential customers in each segment along with the coordinates are asfollows: Which would be the best location by the center-of-gravity method? Problem 2: 10 pointsFor the Davis drugstore chain in problem 1, suppose that aer five years, half the customers from segment 1 are expected to move to segment 2. Where should the drugstore shift, assuming the samecriteria are adopted, and the chain still use center of gravity method?Problem 3: 10 pointsCunningham Products is evaluating five possible locations to build a distribution center. Data estimated from the accounting department are provided below. The annual production is estimated to be 30,000 units. Cunningham Products Location Analysis: a) Which location provides the least cost?b) For what range of demand would each location be best? (Hint: Slides 25, 26 for Break-even analysis) Problem 4: 10 pointsMilford Lumber Company ships construction materials from three wood-processing plants to three retail stores. The shipping cost, monthly production capacities, and monthly demand for framing lumber aregiven below and in the supplement Excel file. Formulate a linear optimization model for this problem, implement your model on aspreadsheet, and use Excel Solver to find a solution that minimizes total distribution costs. SeeSupplement E for a discussion of modeling and solving transportation problems. Clarify your constraints like slide 30