The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning their long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table:   Distribution Center Wholesaler A B C D 1 $1.30 $1.40 $1.80 $1.60 2 $1.30 $1.50 $1.80 $1.60 3 $1.60 $1.40 $1.70 $1.50 a. Determine the optimal solution. Show that all capacities have been exhausted and that all demands can be met with this solution. b. What is the total cost of the solution?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
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Problem 5.2SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning their long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table:

  Distribution Center
Wholesaler A B C D
1 $1.30 $1.40 $1.80 $1.60
2 $1.30 $1.50 $1.80 $1.60
3 $1.60 $1.40 $1.70 $1.50

a. Determine the optimal solution. Show that all capacities have been exhausted and that all demands can be met with this solution.
b. What is the total cost of the solution?

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