Table 13.9
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 250, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit.

-Use the information in Table 13.9. Which of these statements regarding the problem is correct?
A) Another plant must be added to the tableau because there are more warehouses than plants.
B) A dummy plant must be added due to production volumes.
C) A dummy warehouse must be added to solve this problem.
D) The simplex method can be used to solve this problem.

Question

Table 13.9
Sagebrush Company has four warehouses (A, B, C, and D) that require monthly shipments of 250, 200, 300, and 200 units per month, respectively. Its three plants (1, 2, and 3) have monthly capacities of 300, 400, and 250, respectively. Plant capacities, warehouse needs and shipping costs (in $) are shown in the following initial transportation method tableau. For example, the shipping cost from Plant 1 to Warehouse A is $17 per unit.
 
-Use the information in Table 13.9. Which of these statements regarding the problem is correct?
A) Another plant must be added to the tableau because there are more warehouses than plants. 
B) A dummy plant must be added due to production volumes. 
C) A dummy warehouse must be added to solve this problem. 
D) The simplex method can be used to solve this problem.

Quizplus · Accepted Answer

The simplex method can be used to solve this problem because there are more plants than warehouses.

Table 13.9 Sagebrush Company Has Four Warehouses (A, B, C, and D)