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Topic 4 Exercise 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 $6 $8 $9 400 source 1 Raw material $4 $7 $3 600 source 2 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?

Topic 4 Exercise 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 $6 $8 $9 400 source 1 Raw material $4 $7 $3 600 source 2 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?

Practical Management Science
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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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
Topic 4 Exercise 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 $6 $8 $9 400 source 1 Raw material $4 $7 $3 600 source 2 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?
Transcribed Image Text:Topic 4 Exercise 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 $6 $8 $9 400 source 1 Raw material $4 $7 $3 600 source 2 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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