Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started