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 source 1 $6 $8 $9 400 Raw material source 2 $4 $7 $3 600 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, $12 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 (10 points Please show your Solver results from Excel)

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Question: 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

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 source 1	$6	$8	$9	400
Raw material source 2	$4	$7	$3	600
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, $12 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? (10 points. Please show your Solver results from Excel)

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