Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows:

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Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows:

From
Southern Gas
Northwest Gas
Hamilton
10
12
To
Butler
20
15
Clermont
15
18
Transcribed Image Text:From Southern Gas Northwest Gas Hamilton 10 12 To Butler 20 15 Clermont 15 18
c. Describe the distribution plan and show the total distribution cost. If your answer is zero enter "0".
Southern Hamilton.
Southern - Butler
Southern - Clermont
Northwest - Hamilton
Northwest - Butler
Northwest - Clermont
Total Cost
Amount
$
$
Cost
Transcribed Image Text:c. Describe the distribution plan and show the total distribution cost. If your answer is zero enter "0". Southern Hamilton. Southern - Butler Southern - Clermont Northwest - Hamilton Northwest - Butler Northwest - Clermont Total Cost Amount $ $ Cost
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