Since there is not enough supply, some of the demands at these destinations may not be satisfied.
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Question:
Since there is not enough supply, some of the demands at these destinations may not be satisfied. Suppose these are penalty costs for every unsatisfied demand unit which are given by 5, 3, and 2 for destinations A, B, and C respectively.
1. Determine how many units and from which source needs to be shipped using the following methods:
A) NWC
B) LCM
C) VAM
2. Find the minimum distribution cost
Consider the following transportation problem:
Destination
company | A | B | C | Supply |
1 | 5 | 1 | 7 | 10 |
2 | 6 | 4 | 6 | 80 |
3 | 3 | 2 | 5 | 15 |
Demand | 75 | 20 | 50 |
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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