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The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below. WHOLE-SALER 1 2 3 DISTRIBUTION CENTER B A 2.20 1.90 2.30 C 2.00 2,00 2.30 2.00 1.90 2.30 D 2.00 2.20 2.00 REQUIREMENTS 30,000 24,000 36,000 24,000 CAPACITY 36,000 48,000 30,000

The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below. WHOLE-SALER 1 2 3 DISTRIBUTION CENTER B A 2.20 1.90 2.30 C 2.00 2,00 2.30 2.00 1.90 2.30 D 2.00 2.20 2.00 REQUIREMENTS 30,000 24,000 36,000 24,000 CAPACITY 36,000 48,000 30,000

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Table 13.11 The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below. WHOLE-SALER 1 2 3 DISTRIBUTION CENTER B A 2.20 Select one: 1.90 2.30 C 2.00 2.00 2.30 2.00 1.90 2.30 D 2.00 2.20 2.00 REQUIREMENTS 30,000 24,000 36,000 24,000 CAPACITY 36,000 48,000 30,000 Use the information in Table 13.11. Which of the following statements about this scenario is incorrect? A. A dummy warehouse is required to complete the analysis. B. It costs $2 per gallon to ship one gallon from Wholesaler 2 to Distribution Center C. C. It costs $2 per gallon to ship from Wholesaler 3 to Distribution Center D. D. It costs $2 per gallon to ship 20,000 gallons from Wholesaler 1 to Distribution Center D. 2
Transcribed Image Text:Table 13.11 The Neale Company has four distribution centers (A, B, C, and D) that require monthly shipments of 30,000, 24,000, 36,000, and 24,000 gallons of diesel fuel per month, respectively. Three wholesalers (1, 2, and 3) are willing to supply up to 36,000, 48,000 and 30,000 gallons, respectively. Total costs (in $) for both shipping and price per gallon follow. A transportation method tableau is provided below. WHOLE-SALER 1 2 3 DISTRIBUTION CENTER B A 2.20 Select one: 1.90 2.30 C 2.00 2.00 2.30 2.00 1.90 2.30 D 2.00 2.20 2.00 REQUIREMENTS 30,000 24,000 36,000 24,000 CAPACITY 36,000 48,000 30,000 Use the information in Table 13.11. Which of the following statements about this scenario is incorrect? A. A dummy warehouse is required to complete the analysis. B. It costs $2 per gallon to ship one gallon from Wholesaler 2 to Distribution Center C. C. It costs $2 per gallon to ship from Wholesaler 3 to Distribution Center D. D. It costs $2 per gallon to ship 20,000 gallons from Wholesaler 1 to Distribution Center D. 2
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