Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Chemical uses a chemical called CS-01 in the production operations of five divisions. Only six of its suppliers meet Chemical's quality control standards, and

image text in transcribedimage text in transcribed

1. Chemical uses a chemical called CS-01 in the production operations of five divisions. Only six of its suppliers meet Chemical's quality control standards, and only these suppliers can produce CS-01 in sufficient quantities to meet the needs || of each division. The amount of CS-01 required by each division and the price per gallon charged by each supplier are as follows: DIVISION Demand (thousands of gallons) 40 PROVIDER 1 1 2. 45 2 PRICE PER GALLON ($) 12.60 14.00 10.20 14.20 12.00 3 3 50 4 4 35 5 5 45 The cost per gallon ($) for shipping from each supplier to each division is provided in the following table: The cost per gallon ($) for shipping from each supplier to each division is provided in the following table: 2 4 5 DIVISION 1 2 3 4 5 1 2.75 0.80 4.70 2.60 3.40 2.50 0.20 2.60 1.80 0.40 Provider 3 3.15 5.40 5.30 4.40 5.00 2.80 1.20 2.80 2.40 1.20 2.75 3,40 6.00 5.00 2.60 Chemical considers it appropriate to distribute contracts among its suppliers so that the company is less affected by supplier problems (for example, worker strikes or the availability of resources). Company policy requires that each division have a separate supplier. Determine the optimal allocation of suppliers to the divisions and calculate the total cost of meeting the division's demand

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Essential Controller An Introduction To What Every Financial Manager Must Know

Authors: Steven M. Bragg

2nd Edition

1118169972, 9781118169971

More Books

Students also viewed these Accounting questions

Question

What is one of the skills required for independent learning?Explain

Answered: 1 week ago