A Firm Has Established a Distribution Network for the Supply

question 42

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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Definitions:

International System

A global framework consisting of political, economic, social, and legal rules that govern the relations between nations.

Exchange Rates

The rate at which one currency can be converted into another.

Bretton Woods

Bretton Woods refers to the 1944 international agreement that established fixed foreign exchange rates for major currencies, thereby creating a framework for international trade and financial relations.

World War II

A worldwide war that occurred between 1939 and 1945, engaging the majority of the world's countries, including all major powers, which eventually split into two conflicting military coalitions: the Axis and the Allies.