Question

M4_IND1. Green Enterprises uses a chemical called KQ2 in production operations at its five divisions (1,2,3,4,5). Only six suppliers (A,B,C,D,E,F) of KQ2 meet Green's quality control standards. Each supplier can meet any of the division's demands. The cost for each supplier to ship to each division is shown in the table below. Green believes in spreading its business among the suppliers so that the company will be less affected by supplier problems (e.g., labor strikes or resource availability). Company policy requires that each division have a separate supplier. SUPPLIER DIVISION B C D E A 614 534 660 680 590 630 1 702 693 603 639 693 630 2 865 830 775 850 900 930 4 532 553 595 553 511 581 720 648 684 693 657 747 5 Find the optimal assignment of suppliers to divisions that will minimize the total cost. a) What is the total cost for all suppliers to ship to their assigned division? b) To what Supplier is Division 1 assigned to? c) To what Supplier is Division 2 assigned to? d) To what Supplier is Division 3 assigned to? e) To what Supplier is Division 4 assigned to? f) To what Supplier is Division 5 assigned to?

Answer 1

gol(a) The total Cost for all Suppliers to Shiptitheir assigned chiSion to-tal CoSt 590 +603 + 75t553+648 = B169 ( DiviSion 1 QsSigned to E Supplier (E) asigned to A Supplier (A) to c Supplier (c) c) DiviSSion 2 a kigmed Qgned to FSuper (e) to Supplier (B) ld) Divi SSion 3 I1 e) Divi8Sion 4 asgmed Cf) Diviesion 5 total CoSt 590t603t115+553 +648 3169 A