Based on the following scenario, what is the total cost for the order of the optimal solution? Southeastern University must purchase 1000 dorm bunk beds from up to five vendors (they can chose 1-5 of the vendors). Vendor 1 charges $500 per bed but there delivery is free. Vendor 2 charges $350 per bed plus a total delivery charge of $4,000. Vendor 3 charges $250 per bed plus a total delivery charge of $6,000. Vendor 4 charges $300 per bed plus a total delivery charge of $4,500. Vendor 5 charges $225 per bed plus a total delivery charge of $8,000.  Vendor 1 will sell the university at most 600 beds; vendor 2, at most 900; and vendor 3, at most 400; vendor 4, at most 550, and vendor 5; at most 700. The minimum order from any vendor is 200 beds. Determine how to minimize the costs of purchasing the needed beds.

Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter23: Simulation With The Excel Add-in @risk
Section23.1: Introduction To @risk: The News Vendor Problem
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Based on the following scenario, what is the total cost for the order of the optimal solution?

Southeastern University must purchase 1000 dorm bunk beds from up to five vendors (they can chose 1-5 of the vendors). Vendor 1 charges $500 per bed but there delivery is free. Vendor 2 charges $350 per bed plus a total delivery charge of $4,000. Vendor 3 charges $250 per bed plus a total delivery charge of $6,000. Vendor 4 charges $300 per bed plus a total delivery charge of $4,500. Vendor 5 charges $225 per bed plus a total delivery charge of $8,000.  Vendor 1 will sell the university at most 600 beds; vendor 2, at most 900; and vendor 3, at most 400; vendor 4, at most 550, and vendor 5; at most 700. The minimum order from any vendor is 200 beds. Determine how to minimize the costs of purchasing the needed beds.

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