A firm has established a distribution network for the supply of a raw material critical to itsmanufacturing. Currently there are two origins for this material, which must be shipped to threemanufacturing plants. The current network has the following characteristics:COSTSPLANT 1PLANT 2PLANT 3SUPPLYRaw Material source 1$6$8$9400Raw Material source 2$4$7$3600Demand500500500Supply < DemandThe firm has identified two potential sites for a third raw material source; these are identified asCandidate A and Candidate B. From A, the costs to ship would be $9 to Plant 1, $10 to Plant 2,and $12 to Plant 3. From B, these costs would be $11, $14, and $8. The new source, wherever itis located, will have a capacity of 500 units. Solve with the transportation method. Which siteshould be selected?

When supply is less than demand or vice versa, it is called as unbalanced problem. For unbalanced…

Answered: A firm has established a distribution…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A firm has established a distribution network for the supply of a raw material critical to its
manufacturing. Currently there are two origins for this material, which must be shipped to three
manufacturing plants. The current network has the following characteristics:

COSTS	PLANT 1	PLANT 2	PLANT 3	SUPPLY
Raw Material source 1	$6	$8	$9	400
Raw Material source 2	$4	$7	$3	600
Demand	500	500	500	Supply < Demand

The firm has identified two potential sites for a third raw material source; these are identified as
Candidate A and Candidate B. From A, the costs to ship would be $9 to Plant 1, $10 to Plant 2,
and $12 to Plant 3. From B, these costs would be $11, $14, and $8. The new source, wherever it
is located, will have a capacity of 500 units. Solve with the transportation method. Which site
should be selected?

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