Question

From To City A City B City C Reservoir 1 70.000 80.000 100.000 Reservoir 2 90.000 70.000 80.000

          From
To
City A
City B
City C
Reservoir 1
70.000
80.000
100.000
Reservoir 2
90.000
70.000
80.000

Added by Michelle A.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

Step 1

Sources (Reservoirs): - Reservoir 1 - Reservoir 2 Destinations (Cities): - City A - City B - City C Supply: - Reservoir 1: 50 million gallons per day - Reservoir 2: 50 million gallons per day Demand: - City A: 40 million gallons per day - City B: 40 million Show more…

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Two reservoirs are available to supply water for the needs of three cities. Each reservoir can supply 50 million gallons of water per day. Each city requires 40 million gallons of water per day. For every shortfall of one million gallons per day, there is a fine to be paid. For city A, the fine is IDR 200,000; for city B, the fine is IDR 220,000, and for city C, it is IDR 230,000. The cost (in rupiah) for transporting from the reservoir to each city per million gallons of water is as shown in the following table: Question: Formulate this problem into a transportation table, then find a basic initial feasible solution using the Vogel approach method. To City B: 80,000 70,000 From Reservoir 1 Reservoir 2 City A: 70,000 90,000 City C: 100,000 80,000