The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning their long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table: Distribution Center Wholesaler A B D 1 $1.70 $1.90 $1.60 $1.70 2 $1.40 $1.90 $1.60 $1.70 3 $1.60 $1.50 $1.80 $1.40 a. Which of the following statements regarding setting up the tableau for the optimal solution for this problem is true? O A. The sum of supply capacities is greater than the sum of demands, so a dummy distribution center is needed. O B. The sum of supply capacities is less than the sum of demands, so a dummy wholesaler is needed. OC. The sum of supply capacities equals the sum of demands, so no dummy wholesaler or distribution center is needed. The capacity is fully utilized and the demand is fully satisfied.
The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning their long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table: Distribution Center Wholesaler A B D 1 $1.70 $1.90 $1.60 $1.70 2 $1.40 $1.90 $1.60 $1.70 3 $1.60 $1.50 $1.80 $1.40 a. Which of the following statements regarding setting up the tableau for the optimal solution for this problem is true? O A. The sum of supply capacities is greater than the sum of demands, so a dummy distribution center is needed. O B. The sum of supply capacities is less than the sum of demands, so a dummy wholesaler is needed. OC. The sum of supply capacities equals the sum of demands, so no dummy wholesaler or distribution center is needed. The capacity is fully utilized and the demand is fully satisfied.
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning