wholesalers (1, 2 and 3) have indicated their willingness to supply as many as 60,000, 80,000, and 50,000 liters of fuel, respectively. The total cost (shipping and price) of delivering 1000 liters of fuel from each wholesaler to each distribution center is shown in the following table. Distribution center Wholesaler A B C D • 1 1700 1600 1600 1600 2 1500 1800 1600 1700 3 1800 1500 1800 1600 I Determine the optimal solution. Check if all capacities have been exhausted and that all demands can be met with this solution. II. 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
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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#4. The Pelican Company has four distribution centers (A, B, C, and D) that require 50,000, 40,000,
60,000 and 40,000 liters of diesel fuel, respectively, per month for their long-haul trucks. Three fuel
wholesalers (1, 2 and 3) have indicated their willingness to supply as many as 60,000, 80,000, and
50,000 liters of fuel, respectively. The total cost (shipping and price) of delivering 1000 liters of fuel
from each wholesaler to each distribution center is shown in the following table.
Distribution center
Wholesaler A B C D
• 1
1700 1600 1600 1600
2
1500 1800 1600 1700
3
1800 1500 1800 1600
I.
Determine the optimal solution. Check if all capacities have been exhausted and that all
demands can be met with this solution.
II.
What is the total cost of the solution?
Transcribed Image Text:#4. The Pelican Company has four distribution centers (A, B, C, and D) that require 50,000, 40,000, 60,000 and 40,000 liters of diesel fuel, respectively, per month for their long-haul trucks. Three fuel wholesalers (1, 2 and 3) have indicated their willingness to supply as many as 60,000, 80,000, and 50,000 liters of fuel, respectively. The total cost (shipping and price) of delivering 1000 liters of fuel from each wholesaler to each distribution center is shown in the following table. Distribution center Wholesaler A B C D • 1 1700 1600 1600 1600 2 1500 1800 1600 1700 3 1800 1500 1800 1600 I. Determine the optimal solution. Check if all capacities have been exhausted and that all demands can be met with this solution. II. What is the total cost of the solution?
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