Table 108
the Neale Company Has Four Distribution Centers (A, B

question 123

Multiple Choice

Table 10.8
The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000,
and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000,
48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price follow. A blank transportation method
tableau is provided below.
$$\begin{array}{l}\text { Distribution Center }\\\begin{array} { | c | c | c | c | c | } \hline \text { Wholesaler } & \text { A } & \text { B } & \text { C } & \text { D } \\\hline 1 & 2.2 & 2.0 & 2.0 & 2.0 \\2 & 1.9 & 2.3 & 2.0 & 2.2 \\3 & 2.3 & 1.9 & 2.3 & 2.0 \\\hline\end{array}\end{array}$$


-Use the information in Table 10.8. What can be said about a plan that ships 18,000 gallons from 1 to C; 18,000 gallons from 1 to D; 30,000 gallons from 2 to A; 18,000 gallons from 2 to C; 24,000 gallons from 3 to B; and 30,000 from 3 to D?

• A) It is not feasible in terms of satisfying distribution center demands.
• B) It is feasible, and the total monthly cost is greater than $227,000.
• C) It is not feasible in terms of wholesaler availabilities.
• D) It is feasible, and the total monthly cost is less than $223,000.

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