Question

For the problem data set below, what is the northwest-corner allocation to the cell Source 1-Destination 1? CCOSTSDest. 1 Dest. 2 Dest. 3 SupplyA. Source 1 2 1 3 30B. Source 2 4 2. 1 40C. Source 3 3. 8 6 20D. Demand 15. 50 25 90 \ 90

Answer 1

Answer:

Explanation:

In the Northwest-Corner Method, we first assign resources to the entity located at top-left corner of the box (north-west). Hence, in our case this entity would be the cell relating Source 1 to Destination 1.

The demand at destination 1 is only 15 units, whereas the source 1 can supply a maximum of 30 units. Thus 15 units will be supplied to destination 1 from source 1 to meet the demand.

Hence, the Source 1 - Destination 1 cell will be allocated 15 units by the North-West allocation method.

Cost related to this cell will be: 15(2) = $30.

P.S: Complete allocation to each source and destination is attached in the image.