The company currently shipping from its distribution center and warehouse in Riyadh. To all the targeted other twenty-one cities the company has warehouse that is appropriate with size of the business in the region. In each city the warehouse is equipped for receiving and storing products, and with sleeping area for the drivers. Although theses warehouses cannot be used as distribution centers without upgrading the facilities to reach the company quality standards. Marketing department has done market research about opportunities of selling the company's new porcelain glue. The research has concluded that there is a huge demand on all the construction materials, including porcelain glue, especially in Riyadh, Jeddah, Mecca, and Dammam due to the large growing in construction sector. Including Riyadh distribution center which has fixed cost of 200,000 SAR, operations department nominated Either Jeddah or Dammam warehouses or both to be upgraded to facilitate the distribution process. Upgrading Jeddah warehouse will add a fixed cost of 150,000 SAR and upgrading Dammam warehouse will add a fixed cost of 120,000 SAR. The company has Mercedes trucks that consume 19.44 liters of diesel per 100 km, each truck is equipped with 40 feet container of maximum load of 26 tons The company's safety policy states the following 1. Total time of round-trip delivery less than 12 hours is allowed 2. One-way trip of more than 14 hours is not allowed, driver must sleep (costs the company 250 SAR per trip) For quality purposes delivery must not exceed 25 tons The company wishes to satisfy all demand. نبي نحط قيد انه الرياض يتوصل لها من الرياض، واذا تم افتتاح مركز ثاني ما يتوصل لنفس المدينة الا منه Table [1] below shows the weekly demand of all twenty-two cities Table [1]: Weekly demand City Index A B с D E F G H I K L M N 0 P Q R S T U