HSS is a Saskatoon-based producer of emergency vehicles. It equips the produced vehicles with medical gears based on the received orders. To equip the vehicles, HSS requires eight standard medical devices. Due to the high possibility of miscommunication with the suppliers, HSS wants to purchase all these devices at once.

HSS has received bids from six suppliers; the offered prices are as follows. The prices are in dollars, and not all the manufacturers produce all the devices. For instance, supplier 1 does not produce device 1; the offered price of this supplier for one unit of device 2 is $18.20.

Furthermore, the suppliers have assured HSS that they can provide as many devices as HSS needs if they receive the contract (given that they have bid on that device).

Determine the optimum cost if HSS wants to minimize the purchasing costs (USE EXCEL)

 

Devices 1 3 4 5 6 7 8 18.20 7.80 5.40 3.90 2.80 8.20 6.30 3.30 4.90 4.80 4.40 5.60 3.60 Suppliers 4 8.00 5.00 6.80 6.70 4.20 5 7.20 6.40 3.90 6.40 5.80 3.00 7.00 5.80 7.50 4.50 5.60 6.00 7.20 Demand 4,000 3,500 4,000 3,000 1,900 1,900 200 1,350