A Firm Has Established a Distribution Network for the Supply

question 63

Essay

A firm has established a distribution network for the supply of a raw material critical to its manufacturing.Currently there are two origins for this raw material,which must be shipped to three manufacturing plants.The current network has the following characteristics: The firm has identified two potential sites for a third raw material source; these are identified as Candidate A and Candidate B.From A,the costs to ship would be $9 to Plant 1,$10 to Plant 2,and $12 to Plant 3.From B,these costs would be $11,$14,and $8.The new source,wherever it is located,will have a capacity of 500 units.Solve with the transportation method.Which site should be selected?

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