Question: Question 2 [ 2 5 points ] : A retailer procures its required products from 4 potential suppliers. After, the products are sent to the
Question points:
A retailer procures its required products from potential suppliers. After, the products are sent to the warehouses and then
to the stores. The company has warehouses and stores. The capacities of the suppliers and the warehouses are limited
In addition, the retailer has to satisfy the demand in each store. Table shows the unit transportation cost from each
warehouse to each store, capacities of the warehouses, and the demand in each store.
Table
There is a fixed monthly relationship cost to work with and manage each supplier and in order to manage the risk, we
would like to work with at least three suppliers. Table shows the unit transportation costs from each supplier to each
warehouse, the capacities of the suppliers, and the fixed cost of managing each supplier.
Table
Find the optimal transportation quantity from each supplier to each warehouse, and from each warehouse to each store.
Which suppliers should be used?
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