Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company is planning to purchase a component from suppliers P, Q, R, and S who will send the component to the company's plants in
A company is planning to purchase a component from suppliers P, Q, R, and S who will send the component to the company's plants in cities A, B, and C. The unit purchase cost from suppliers P, Q, R. and S are 75, 78, 77, and 76 dollars per unit, respectively. The company must also pay transportation cost (in dollars per unit), as follows: from supplier P to plant A, B, and C: 8, 6, and 4. from supplier Q to plant A, B, and C: 5.7, and 6. from supplier R to plant A, B, and C: 9.3. and 7 from supplier S to plant A, B, and C: 6, 9, and 8. The monthly demand from plant A. B. and C are: 1600, 1700, and 2400 units, respectively. The monthly capacity of suppliers P, Q, R and S are: 1400, 2600, 1900, and 3300 units, respectively, Find the optimal purchasing plan that will minimize the total monthly cost. You must show your calculation on your Excel spreadsheets showing the optimal solution and the SOLVER setup. The optimal solution suggests: [1] The total monthly purchasing and transportation cost is dollars. [2] The company should purchase units from supplier P. 13] The company should purchase units from supplier Q. [4] The company should purchase units from supplier R. [5] The company should purchase units from supplier S. You must type your final answer on the given space below and label your answer clearly. Do NOT show your spreadsheet here
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