The least-cost method

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Reference no: EM136131

You are to advise tom (the operations manager) on an appropriate shipping pattern using-

a) the northwest corner rule

b) The least-cost method

In your results make sure to display the shipping patterns for each method. As well, compute the total shipping cost for each method. Compare these costs as well as summarize your recommendations.

Note that all costs in the table are in dollars ($) as well as represent the cost of shipping one bushel of olives from the corresponding distribution center to the appropriate destination (retail outlet).

Distribution - destination (retail outlet)

CENTER     A         B          C       D       E        F         G     SUPPLY (BUSHELS)

1            $ 38.43  37.25  36.54  39.27  36.37  39.04  24.08  300
2               37.62  29.55  38.87  37.64  29.37  46.78  25.40  200
3               29.88  38.99  39.52  35.98  37.23  36.97  26.17  400
4               28.01  37.66  29.70  36.45  38.27  39.33  27.42  500
5               36.42  47.87  29.22  46.71  28.88  46.33  28.00  200
6               32.67  31.44  32.52  34.88  30.89  38.55  25.90  300

DEMAND      150     250    350     325     250     150    425
(BUSHELS)

Reference no: EM136131

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