Question -
In Solved Problem, Williams Auto Top Carriers proposed opening a new plant in either New Orleans or Houston. Management found that the total system cost (of production plus distribution) would be $20,000 for the New Orleans site. What would be the total cost if Williams opened a plant in Houston? At which of the two proposed locations (New Orleans or Houston) should Williams open the new facility?
Problem - Find an initial solution to the following transportation problem.
|
From
|
To
|
Supply
|
|
Los Angeles
|
Calgary
|
Panama City
|
|
Mexico City
|
$6
|
$18
|
$8
|
100
|
|
Detroit
|
$17
|
$13
|
$19
|
60
|
|
Ottawa
|
$20
|
$10
|
$24
|
40
|
|
Demand
|
50
|
80
|
|
|
a) Use the northwest-corner method. What is its total cost?
b) Use the intuitive lowest-cost approach. What is its total cost?
c) Using the stepping-stone method, find the optimal solution. Compute the total cost.