National Energy Inc. supplies natural gas to customers to three counties in PennsylvaniaErie, Franklin, and Venango. National

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National Energy Inc. supplies natural gas to customers to three counties in Pennsylvania€”Erie, Franklin, and Venango. National Energy receives natural gas from three suppliers€”Energy Efficient, Northeast Gas, and Western Gas. Expected demand for natural gas for the upcoming winter season are as follows:  Erie County: 500 units; Franklin County: 300 units; and Venango County: 400 units. The supplies of natural gas available from the three suppliers are as follows: Energy Efficient: 400 units; Northeast Gas: 350 units; and Western Gas: 500 units. The cost of distribution per unit of natural gas (in $000) varies depending on the location of the suppliers and is given in the following table. Develop an optimum distribution plan, and compute the total cost: 

To From Energy Efficient Northeast Gas Venango Supply available 400 Franklin Erie 13 14 11 13 15 12 350 Western Gas 20 1

Distribution
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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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