Table 9.8
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.
Distribution Center
$$\begin{array} { | c | c | c | c | c | }
\hline \text { Wholesaler } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \
\hline 1 & 2.2 & 2.0 & 2.0 & 2.0 \
2 & 1.9 & 2.3 & 2.0 & 2.2 \
3 & 2.3 & 1.9 & 2.3 & 2.0 \
\hline
\end{array}$$

-The Nelson Company has four distribution centers (A,B,C,andD)that require shipments of 20,30,40,and 10 units per week,respectively.Its three plants (1,2,and 3)have monthly capacities of 40,30,and 30,respectively.Shipping costs (in $)follow:
Distribution Center
$$\begin{array} { | c | c | c | c | c | }
\hline \text { Plant } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \
\hline 1 & 40 & 30 & 10 & 50 \
2 & 20 & 20 & 30 & 40 \
3 & 10 & 50 & 10 & 30 \
\hline
\end{array}$$

What can be said about a plan that ships 40 units from 1 to C,30 units from 2 to B,20 units from 3 to A,and 10 units from 3 to D?
A) It is not feasible in terms of plant capacities.
B) It is not feasible in terms of satisfying distribution center demands.
C) It is feasible, and the weekly shipping cost is less than $1,600.
D) It is feasible, and the weekly shipping cost is greater than $2,000.

Question

Table 9.8
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.
Distribution Center
 $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Wholesaler } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \
\hline 1 & 2.2 & 2.0 & 2.0 & 2.0 \
2 & 1.9 & 2.3 & 2.0 & 2.2 \
3 & 2.3 & 1.9 & 2.3 & 2.0 \
\hline
\end{array}$$ 
 
-The Nelson Company has four distribution centers (A,B,C,andD)that require shipments of 20,30,40,and 10 units per week,respectively.Its three plants (1,2,and 3)have monthly capacities of 40,30,and 30,respectively.Shipping costs (in $)follow:
Distribution Center
$$\begin{array} { | c | c | c | c | c | } 
\hline \text { Plant } & \mathrm { A } & \mathrm { B } & \mathrm { C } & \mathrm { D } \
\hline 1 & 40 & 30 & 10 & 50 \
2 & 20 & 20 & 30 & 40 \
3 & 10 & 50 & 10 & 30 \
\hline
\end{array}$$

What can be said about a plan that ships 40 units from 1 to C,30 units from 2 to B,20 units from 3 to A,and 10 units from 3 to D?
A) It is not feasible in terms of plant capacities. 
B) It is not feasible in terms of satisfying distribution center demands. 
C) It is feasible, and the weekly shipping cost is less than $1,600. 
D) It is feasible, and the weekly shipping cost is greater than $2,000.

Quizplus · Accepted Answer

The plan ships the exact amount of units required by each distribution center and does not exceed the capacity of any plant. Therefore, it is feasible in terms of satisfying distribution center demands and plant capacities. To calculate the shipping cost, we can multiply the quantity shipped from each plant to each distribution center by the corresponding shipping cost and sum up the totals. With this plan, the total shipping cost per week is:

(40 x 10) + (30 x 20) + (20 x 40) + (10 x 30) = $1,800

which is less than $1,600. Therefore, this plan is feasible and the weekly shipping cost is less than $1,600.

Table 98 the Neale Company Has Four Distribution Centers (A, B

Table 98
the Neale Company Has Four Distribution Centers (A, B