4.- A building materials company with production facilities in Reno, Spokane and Tacoma ships boxes to three distribution centers with costs per box as shown in the table. Get the cost of transportation by northwest corner method. From Center 1 Reno $3 Spokane $4 Tacoma $3 Demand 30 Center 2 $3 $2 $2 30 Center 2 $2 $3 $3 35 Capacity 25 40 30

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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4.- A building materials company with production facilities in Reno,
Spokane and Tacoma ships boxes to three distribution centers with
costs per box as shown in the table. Get the cost of transportation by
northwest corner method.
From
Center 1
Reno
$3
Spokane
$4
Tacoma
$3
Demand
30
Center 2
$3
$2
$2
30
Center 2
$2
$3
$3
35
Capacity
25
40
30
Transcribed Image Text:4.- A building materials company with production facilities in Reno, Spokane and Tacoma ships boxes to three distribution centers with costs per box as shown in the table. Get the cost of transportation by northwest corner method. From Center 1 Reno $3 Spokane $4 Tacoma $3 Demand 30 Center 2 $3 $2 $2 30 Center 2 $2 $3 $3 35 Capacity 25 40 30
Expert Solution
INTRODUCTION

One of the simplest ways to come up with a workable solution to a transportation issue is to use the northwest corner rule. The northwest-corner rule works best for coming up with a first workable solution to a transportation issue. The ease of use of this approach is by far its greatest benefit, but because the northwest method does not take prices into account, it could take more iterations until the best answer is found.

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