The Donna Donni Clothing Group owns factories in three states (Kelantan, Perak, Kuala Lumpur), which distribute to three retail dress shops in three other states (Perlis, Pahang, and Terengganu). The following table summarizes factory availabilities, projected store demands, and unit shipping costs. The shipping cost vary, and would like to find the least cost way to meet the demands at each of the state. Perlis needs to receive 900 pieces, Pahang needs 850 pieces, and Terengganu needs 650 pieces. Kelantan has 500 pieces, Perak has 800, and Kuala Lumpur has 1100.
The Donna Donni Clothing Group owns factories in three states (Kelantan, Perak, Kuala Lumpur), which distribute to three retail dress shops in three other states (Perlis, Pahang, and Terengganu). The following table summarizes factory availabilities, projected store demands, and unit shipping costs. The shipping cost vary, and would like to find the least cost way to meet the demands at each of the state. Perlis needs to receive 900 pieces, Pahang needs 850 pieces, and Terengganu needs 650 pieces. Kelantan has 500 pieces, Perak has 800, and Kuala Lumpur has 1100.
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
Problem 2VC
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a) Use the Northwest Corner Rule to develop an initial solution.
b) Apply the Stepping-Stone Method to find the minimum transportation cost.
c) Calculate the total cost for this situation.
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