Two plants supply three customers with medical supplies. The unit costs of shipping from the plants to the customers, along with the supplies and demands, are given in the following table. From Plant 1 Plant 2 Demand Customer 1 $55 $10 10 To Customer 2 $65 $15 10 Customer 3 $80 $25 10| Supply 35 50

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
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Two plants supply three customers with medical supplies. The unit costs of shipping from the plants to
the customers, along with the supplies and demands, are given in the following table.
From
Plant 1
Plant 2
Demand
Customer 1
$55
$10
10
To
Customer 2
$65
$15
10
Customer 3
$80
$25
10|
Supply
35
50
The company's goal is to minimize the cost of meeting customers' demands.
(a) Formulate this problem as a transportation problem by constructing the appropriate parameter
table. (Initialization)
(b) Write a linear programming formulation for this problem.
(c) Obtain an optimal solution using the transportation simplex method with Northwest Corner rule.
Transcribed Image Text:Two plants supply three customers with medical supplies. The unit costs of shipping from the plants to the customers, along with the supplies and demands, are given in the following table. From Plant 1 Plant 2 Demand Customer 1 $55 $10 10 To Customer 2 $65 $15 10 Customer 3 $80 $25 10| Supply 35 50 The company's goal is to minimize the cost of meeting customers' demands. (a) Formulate this problem as a transportation problem by constructing the appropriate parameter table. (Initialization) (b) Write a linear programming formulation for this problem. (c) Obtain an optimal solution using the transportation simplex method with Northwest Corner rule.
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