A firm owns facilities at six places. It has manufacturing plants at places A B and C with daily production of 50, 40 and 60 units respectively. At points E, E and F it has three warehouse with daily demands of 20 , 95 and 35dunits respectively. Per unit shipping costs are given in the followings table. If the firm wants to minimize its total transportation cost how should it route its products ?
Solution: Obtaining the initial feasible Solution: The first step in using the transportation method to obtain a feasible solution. The initial feasible solution can be obtained by several methods. The obtained by several methods. The commonly used are the north west corner ( NWE) rule least cost methods ( LCM) and the Vogel approximation methods ( VAM).
Initial Basic Feasible Solution NW Corner Methods
Total Cost: 6x20+4x30+8x40+4x25x+2x35x=Rs. 730This routing of the units meets all the rim requirements and entails 5 ( = 3+3-1) shipments as there as are 5 occupied cells. It involves a total cost of Ts 730.
Initial Feasible Solution Least Cost Methods