Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Q3) (25 points) A firm has established a distribution network for the supply of a raw material critical to its manufacturing. Currently there are
Q3) (25 points) A firm has established a distribution network for the supply of a raw material critical to its manufacturing. Currently there are three origins for this raw material, which must be shipped to three manufacturing plants. The current network has the following characteristics: Origin 1 Origin 2 Origin 3 DEMAND Plant 1 $7 $10 $3 35 Plant 2 $5 $7 $8 45 Plant 3 $2 $3 $9 40 SUPPLY 30 40 50 120/120 (a) Calculate a solution using the northwest-corner rule. Calculate the cost of this solution. (5 points) (b) Calculate the solution using intuitive lowest cost method. Calculate the cost of this solution. (10 points) (c) Using the solution in (c), calculate improvement indices, iterate once. Can you achieve a better solution? If yes, what is the cost of this solution? (10 points)
Step by Step Solution
★★★★★
3.36 Rating (140 Votes )
There are 3 Steps involved in it
Step: 1
a Solution using the northwestcorner rule Origin 1 35 units ...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