Find optimal solution using the modi method

Reference no: EM13147459

Yankee Hill Stone Co has a contract to supply gravel for all road repairs. The company maintains 3 stockpiles, each containing the following amounts of gravel: #1-100 tons, #2-60 tons #3-80 tons. Because of recent flooding, many roads need repair. The company has rcvd instructions to deliver the following amounts of gravel to these locations: Fremont-40 tons, Johnstown-90 tons Marion-110 tons. Contract est. for many years and transportation cost per ton/location are well known.

Fremont Johnstown Marion
#1 4 5 2
#2 8 7 10
#3 6 1 4

Starting with the initial solution derived by the nw corner method identify the cell w/the best cost improvement index and the quantity that can be transferred to that cell.

Find the optimal solution using the MODI method.

Reference no: EM13147459

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