The Sarigold Company has two bottling plants in Kulim and Klang that can produce 10000 and 6000 bottles of juices per day, respectively. The company produces the juice in three bottle sizes namely 500mL, 1L and 1.5L where each size of bottle is procured from a different supplier. Both plants are able to handle all bottle sizes. The suppliers are able to deliver 4000 bottles of size 500mL, 5000 bottles of size 1L and 6000 botles of size 1.5L, respectively. The following is the cost that Sarigold needs to bear to receive each bottle: • 500mL: Kulim: 50 cents, Klang: 30 cents. • 1L: Kulim: 40 cents, Klang: 40 cents. • 1.5L: Kulim: 20 cents, Klang: 50 cents. (a) The company has hired you to report the optimal production plan that can minimize the total cost. You are required to use the North-West Corner Rule as part of the solution method. (b) The supplier of 500mL bottles has indicated that they may change the delivery fee for Kulim. Identify the range of values that would be acceptable for this fee provided that the company wants the current basis to remain optimal.

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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The Sarigold Company has two bottling plants in Kulim and Klang that can produce 10000
and 6000 bottles of juices per day, respectively. The company produces the juice in three
bottle sizes namely 500mL, 1L and 1.5L where each size of bottle is procured from a different
supplier. Both plants are able to handle all bottle sizes. The suppliers are able to deliver 4000
bottles of size 500mL, 5000 bottles of size 1L and 6000 botles of size 1.5L, respectively. The
following is the cost that Sarigold needs to bear to receive each bottle:
• 500mL: Kulim: 50 cents, Klang: 30 cents.
• 1L: Kulim: 40 cents, Klang: 40 cents.
• 1.5L: Kulim: 20 cents, Klang: 50 cents.
(a) The company has hired you to report the optimal production plan that can minimize
the total cost. You are required to use the North-West Corner Rule as part of the solution
method.
(b) The supplier of 500mL bottles has indicated that they may change the delivery fee for
Kulim. Identify the range of values that would be acceptable for this fee provided that
the company wants the current basis to remain optimal.
Transcribed Image Text:The Sarigold Company has two bottling plants in Kulim and Klang that can produce 10000 and 6000 bottles of juices per day, respectively. The company produces the juice in three bottle sizes namely 500mL, 1L and 1.5L where each size of bottle is procured from a different supplier. Both plants are able to handle all bottle sizes. The suppliers are able to deliver 4000 bottles of size 500mL, 5000 bottles of size 1L and 6000 botles of size 1.5L, respectively. The following is the cost that Sarigold needs to bear to receive each bottle: • 500mL: Kulim: 50 cents, Klang: 30 cents. • 1L: Kulim: 40 cents, Klang: 40 cents. • 1.5L: Kulim: 20 cents, Klang: 50 cents. (a) The company has hired you to report the optimal production plan that can minimize the total cost. You are required to use the North-West Corner Rule as part of the solution method. (b) The supplier of 500mL bottles has indicated that they may change the delivery fee for Kulim. Identify the range of values that would be acceptable for this fee provided that the company wants the current basis to remain optimal.
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