An Independent Operator Is Planning Shipments of Gasoline from Two

question 22

Essay

An independent operator is planning shipments of gasoline from two sources to three destinations. Per ton transportation costs are given in the following table.
There are 1000 tons available at A and 1300 tons available at B. Since the destinations want as much as possible, the owner has decided to ship out all available quantities. Solve using either stepping stone or MODI.

---

Definitions:

Chapter 7 Liquidation

A process under the U.S. bankruptcy laws where a bankrupt company's assets are sold off to pay creditors.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Unsecured Creditors

Creditors who have extended credit without securing collateral, putting them at greater risk of loss if the debtor defaults.