Answer to Question #281805 in Accounting for ankitha errolla

Question

The sales and distribution team of the company i-Ace Solutions forecasted the demand of one of their products,

product-A at their four big retailers, in the next quarter. Accordingly, they also collected the data of the supply

capacity of their various distributors.

It was observed that the demands for retailer1, retailer 2, retailer 3 and retailer 4 are 6, 10, 15 and 4 quintals

respectively. Similarly, the supply capacities of the three suppliers S1, S2 and S3 are 14, 6 and 5 quintals

respectively.

The table 2 given above mentions the transportation cost involved in transporting one quintal of item A from

each distributor (S1, S2 and S3) to each retailer (R1, R2, R3 and R4).

Using North-West corner method determine an initial basic feasible solution of the transportation problem and

the total transportation cost.

Answer 1

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