(a) Write an equation for the anticipated cost minimization. (b) Draw a network model indicating the flow of the products. (c) Using the Northwest-Corner Rule, how many units should be shipped?

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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QUESTION 1
A bottling water company distributes its product through four of its wholesale distributors
situated at four locations. The weekly demand of the distributors and the cost of transportation
per unit varies between different supply points and destination points. The supply, demand and
transportation cost are as follows:
Transportation cost per unit
Supply Cape Coast
1
2
3
5
7
6
5000
Aburi
6
8
3
4000
Destination
Ningo-Prampram
2
5
2000
Akuse
7
4
3
4000
(a) Write an equation for the anticipated cost minimization.
(b) Draw a network model indicating the flow of the products.
(c) Using the Northwest-Corner Rule, how many units should be shipped?
Supply
6000
5000
4000
Transcribed Image Text:QUESTION 1 A bottling water company distributes its product through four of its wholesale distributors situated at four locations. The weekly demand of the distributors and the cost of transportation per unit varies between different supply points and destination points. The supply, demand and transportation cost are as follows: Transportation cost per unit Supply Cape Coast 1 2 3 5 7 6 5000 Aburi 6 8 3 4000 Destination Ningo-Prampram 2 5 2000 Akuse 7 4 3 4000 (a) Write an equation for the anticipated cost minimization. (b) Draw a network model indicating the flow of the products. (c) Using the Northwest-Corner Rule, how many units should be shipped? Supply 6000 5000 4000
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