Question: Q2: A firm has established a distribution network for the supply of a raw material critical to its manufacturing. Currently there are two origins for

Q2: A firm has established a distribution network

Q2: 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 $6 $8 $9 400 Raw material source 1 Raw material source 2 Demand $4 $7 $3 600 500 500 500 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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