A manufacturing firm has four plants and wants to find the most
efficient means of meeting the requirements of its four customers.
The relevant information for the plants and customers, along with
shipping costs in dollars per unit, are shown in the table
below:
Customer (requirement) | ||||||||||||
Factory (capacity) | Customer 1 (125) | Customer 2 (150) | Customer 3 (175) | Customer 4 (75) | ||||||||
A (100) | $ | 15 | $ | 10 | $ | 20 | $ | 17 | ||||
B (75) | $ | 20 | $ | 12 | $ | 19 | $ | 20 | ||||
C (100) | $ | 22 | $ | 20 | $ | 25 | $ | 14 | ||||
D (250) | $ | 21 | $ | 15 | $ | 28 | $ | 12 |
How many arcs will the network have?
7 |
||
3 |
||
4 |
||
12 |
||
16 |
We will use lowest unit cost method to assign Factory to satisfy customer demand.
Total arcs = 7
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