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 raw material, which must be shipped to three manufacturing plants. The current network has the following characteristics:

Dest. 1

Dest. 2

Dest. 3

SUPPLY

Raw Material Source 1

6

8

9

300

Raw Material Source 2

4

7

3

700

DEMAND

500

500

500

1500\1500

The firm has identified five potential sites for a third raw material source:

Costs

Dest. 1

Dest. 2

Dest. 3

Candidate A

7

15

6

Candidate B

12

12

5

Candidate C

13

4

10

Candidate D

12

8

8

Candidate E

6

10

11

The new source, wherever it is located, will have a capacity of 500 units. Solve with the transportation method. Which site should be selected?

Candidate B
Candidate D
Candidate A
Candidate E
Candidate C

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