Table 13.11 The Neale Company Has Four Distribution Centers (A, B, C

Multiple Choice

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.

-Use the information in Table 13.11. Which of the following statements about this scenario is not correct?

A) A dummy warehouse is required to complete the analysis.
B) It costs $2 per gallon to ship from Wholesaler 3 to Distribution Center D.
C) It costs $2 per gallon to ship one gallon from Wholesaler 2 to Distribution Center C.
D) It costs $2 per gallon to ship 20,000 gallons from Wholesaler 1 to Distribution Center D.