Hatcher Enterprises uses a chemical called Rbase in production operations at five divisions. Only six suppliers of Rbase meet Hatcher€™s quality control standards. All six suppliers can produce Rbase in sufficient quantities to accommodate the needs of each division. The quantity of Rbase needed by each Hatcher division and the price per gallon charged by each supplier are as follows:
Demand
Division (1000s of gallons)
1 .......... 40
2 .......... 45
3 .......... 50
4 .......... 35
5 .......... 45
Price
Supplier per gallon ($)
1 .......... 12.60
2 .......... 14.00
3 .......... 10.20
4 .......... 14.20
5 .......... 12.00
6 .......... 13.00

The cost per gallon ($) for shipping from each supplier to each division is provided in the following table:

Hatcher believes in spreading its business among suppliers so that the company will be less affected by supplier problems (e.g., labor strikes or resource availability). Company policy requires that each division have a separate supplier.
a. For each supplier€“division combination, compute the total cost of supplying the division€™s demand.
b. Determine the optimal assignment of suppliers todivisions.

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