A Firm Has Established a Distribution Network for the Supply

Essay

A firm has established a distribution network for the supply of a raw material critical to its manufacturing.Currently there are two origins for this raw material,which must be shipped to three manufacturing plants.The current network has the following characteristics: The firm has identified two potential sites for a third raw material source;these are identified as Candidate A and Candidate B.From A,the costs to ship would be $9 to Plant 1,$10 to Plant 2,and $12 to Plant 3.From B,these costs would be $11,$14,and $8.The new source,wherever it is located,will have a capacity of 500 units.Set up-but do not solve- this problem as though you were going to solve it with transportation problem software.