Use intuitive lowest-cost approach what is its total cost

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Reference no: EM131361050

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
From	Los Angeles	Calgary	Panama City	Supply
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.

Reference no: EM131361050

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