Solve for north west corner rule

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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Solve for north west corner rule

 

INSTRUCTION: Write your answers in a cdean sheet of paper.
An electronics firm has a production plant in each three cities: Marikina, Pasig, and Valenzuela.
It has a customer outlet in each of the three cities: Caloocan, Mandaluyong, and Makati. The
cost in pesos of transporting a receiver from each plant to each outlet is shown below. The table
also shows customer demands at each outlet and production capacities of each plant. The unit
production cost are P100, P110, and P95 at plants in Marikina, Pasig, and Valenzuela,
respectively. Obtain a minimum cost distribution plan using each method: A) Northwest Corner
Rule, B) Minimum Cost Method, and C) Penalty Method.
Plant
Caloocan
Mandaluyong
Makati
Capacity
Marikina
P4.50
7.00
5.50
- 500
Pasig
Valenzuela
5.50
6.50
6.50
- 400
7.00
5.00
8.00
- 600
Demand
500
400
500
Transcribed Image Text:INSTRUCTION: Write your answers in a cdean sheet of paper. An electronics firm has a production plant in each three cities: Marikina, Pasig, and Valenzuela. It has a customer outlet in each of the three cities: Caloocan, Mandaluyong, and Makati. The cost in pesos of transporting a receiver from each plant to each outlet is shown below. The table also shows customer demands at each outlet and production capacities of each plant. The unit production cost are P100, P110, and P95 at plants in Marikina, Pasig, and Valenzuela, respectively. Obtain a minimum cost distribution plan using each method: A) Northwest Corner Rule, B) Minimum Cost Method, and C) Penalty Method. Plant Caloocan Mandaluyong Makati Capacity Marikina P4.50 7.00 5.50 - 500 Pasig Valenzuela 5.50 6.50 6.50 - 400 7.00 5.00 8.00 - 600 Demand 500 400 500
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