Application to Warehouse Location

In applying the set covering model to the warehouse location problem in supply chain, we treat the potential warehouse locations as colunms and the customer regions as rows of the set covering matrix A. We construct the matrix A, by setting its elements as follows  

if customer region i can be supplied by warehouse location j, considering service level and distance criteria 0, otherwise 

By including the cost of building a warehouse at location j as K, we will minimize the total cost of building warehouses such that every customer region can be supplied by at least one warehouse. We will illustrate this with Example 5.3 in the next section. In addition to the warehouse location problem. Section 5.2 will also include other examples in supply chain network design and distribution problems using binary variables for modeling. 

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