A manufacturer consumes Diesel regularly at four sites. You must decide how much fuel you should...
A manufacturer consumes Diesel regularly at four sites. You must
decide how much fuel you should buy from three possible suppliers.
The companies in question have expressed that they can provide the
following amounts during the next month: 400 gallons from company
A, 600 gallons from company B and 750 gallons from company C.
The demand for each location is as follows: 200 gallons from
location 1, 350 gallons from location 2, 500 gallons from location
3 and 650 gallons from location 4.
The transportation costs for each company, supplying each location,
are:
| Location | |||||
| 1 | 2 | 3 | 4 | ||
| Company | A | $18 | $16 | $14 | $17 |
| B | $15 | $17 | $16 | $14 | |
| C | $16 | $20 | $21 | $13 | |
Homework Answers
ANSWER-
| 1 | 2 | 3 | 4 | ||
| A | 18(200) | 16(200) | 14(0) | 17(0) | 400=200=0 |
| B | 15(0) | 17(600) | 16(0) | 14(0) | 600=0 |
| C | 16(0) | 20(550) | 21(200) | 13(0) | 750=200=0 |
| D | 0(0) | 0(0) | 0(2300) | 0(650) | 2950=650=0(DUMMY ROW) |
| DEMAND | 200=0 | 1350=1150=550=0 | 2500=2300=0 | 650=0 | 4700/4700 |
USING NORTH WEST CORNER METHOD-
TOTAL COST=
18*200+16*200+17*600+20*550+21*200+0*2300+0*650
32200
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