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:
CostsPL 1PL 2PL 3SupplyRaw Material S 1$6$8$9400Raw Material S 2$4$7$3600Demand500500500
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, $10 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.
a. What is the optimal solution with evaluating candidate A? $[ Select ]["8,950","9,300","9,700","8,540","1,250"]
b. What is the optimal solution with evaluating candidate B? $[ Select ]["10,000","9,900","8,900","5,500","11,360"]
c. Which site should be selected? [ Select ]["cannot determine based on the information given", "NONE", "A","C","B"]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!