Distribution Center Wholesaler A B D 1 $1.30 $1.40 $1.80 $1.60 $1.30 $1.50 $1.80 $1.60 $1.60 $1.40 $1.70 $1.50 2.
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 (ship-
ping plus price) of delivering 1,000 gallons of de-ionized
water from each wholesaler to each distribution center is
shown in the following table:
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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