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, respectively. From B, these costs would be $11, $14, and $8, respectively. The new source, wherever it is located, will have a capacity of 500 units. Set up this problem as two separate transportation matrices. (Do not solve the problem.)

Question

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, respectively. From B, these costs would be $11, $14, and $8, respectively. The new source, wherever it is located, will have a capacity of 500 units. Set up this problem as two separate transportation matrices. (Do not solve the problem.)

Quizplus · Accepted Answer

The Answer is The setup requires two transportation problems, each with three sources.

A Firm Has Established a Distribution Network for the Supply