PART 2- NUMERICAL 50 points

SHOW ALL YOUR STEPS, CALCULATIONS AND EQUATIONS

Element of competency:

5. Cost Saving Mythologies in Logistics.
6. INCOTERM 2010 and Costing.
7. LEAN Management in Logistics
8. Understand Operational and Financial Metrics and Able to Produce Relevant Reports. Transmit the information

Problem (50 points)

The following data is given in tons per month.

Flour	Supply	Bakery	Demand
1	300	A	250
2	285	B	250
3	475	C	450

Transport cost per unit is given in the table below.

Flour	A	B	C
1	$20	$18	$25
2	$15	$20	$21
3	$18	$15	$14

Required:

How many tons of flour to transport from each supplier to each bakery on a monthly basis in order to minimize the total cost of transportation?

Solve the problem TWICE using the Northwest Corner Method, and the Least Cost Method. Do 2 FULL TABLES ONLY for BOTH METHODS.