Xbook

Xbook is a company that buys old books and sells them to enthusiastic collectors in the USA. Transactions typically happen on the internet but physical copies of the books must be delivered to local book stores from where customers pick them up.

Old books often arrive in boxes and need to be cleaned, entered into the system, and priced before they are ready to be shipped to customers, i.e., the collectors. Currently, Xbook has only one warehouse where they receive, process, and store all the books they buy.

Because the business is growing rapidly, Xbook foresees that the current warehouse will run out of capacity soon. In addition, they see a pressing need to deliver the books faster. Therefore, it's a good time for Xbook to consider setting up a few new facilities around the country.

Setting up a new facility involves significant investment and requires proper planning. Specifically, Xbook has four candidate facilities, including the existing one, with estimated building and maintenance costs.

Transportation cost is also a big factor, the closer the facility is to the destination stores, the cheaper the delivery fee will be. For simplicity, we estimate delivery fees to be a factor of the distance.

• Facilities

• Stores

• Transportation Lanes