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Transportation Problem

1.Find the initial basic feasible solution of following transportation problem.


Warehouse

Factory W1 W2 W3 W4 Factory capacity


F1 19 30 50 10 7
F2 70 30 40 60 9
F3 40 8 70 20 18
Ware house 5 8 7 14 34
Requirement
By
1) North west corner rule
2) The Row minima method
3) The column minima method
4) Matrix Minima method
5) Vogel’s Approximation method
2. A company has two factories A and B which supply three warehouses E, F and G. Factory
capacities are 200 and 300 units respectively.
If overtime is utilized, the production capacity can be increased to 275 and 450 units respectively.
Incremental overtime cost per unit are Rs. 10 and Rs. 15 respectively. The requirement of warehouses
are 150,200 and 300 units respectively. The transport cost per unit between the plants and warehouses
are as follows:
From/To E F G
A 20 15 25
B 10 5 10

(a)Which plant should be given overtime?


(b) Find the optimum manufacturing and shipping schedule to minimise costs.
3. ABC Chemicals manufacturers detergent in their three plants situated in Delhi, Bombay and Kolkata
with capacities of 75,65 and 70 tonnes of detergent per day respectively. They market these from three
warehouses situated in Nagpur, Lucknow and Baroda with requirements of 80,90 and 40 tonnes of
detergent per day respectively.
The transportation cost per tonne of detergent from different plants to different warehouses is as
follows:
From To
Nagpur Lucknow Baroda
Transport cost /tonne (Rs.)
Delhi 15 20 20
Bombay 30 40 30
Kolkata 20 30 40
Work out a distribution strategy, which will incur minimum transportation cost.
4. A T.V. manufacturer has two plants at Delhi and Simla with 2400 and 1800T.V. sets available for
shipment each month respectively. He has warehouses at kolkata Madras Bombay with minimum
demand for 1500, 1500 and 1200 units per month, respectively. The shipping costs per unit from each
plant to each warehouse are given below :
Plant Delhi Simla Demand
Warehouse
Kolkata 24 15 1500
Madras 15 18 1500
Bombay 25.5 15 1200
Supply 2400 1800 4200
How many T.V.sets should be shipped from each plant to each warehouse to minimise transportation
cost. (Use Simplex Method)
5. A manufacturer must produce a product in sufficient quantity to meet contracted sales in four
months. The production capacity and unit cost of production vary from months to month. The product
produced in one month may be held for sale in later months at an estimated storage cost of Rs. 1 per
unit per months. No storage cost is needed for goods sold in the same month in which they are
produced. There is no opening cost and none is available at the end of four months. The necessary
details are given in the following table: -

Months Contracted Maximum Unit cost of


sales production production
1 20 40 14
2 30 50 16
3 50 30 15
4 40 50 17

How much the manufacturer produces each month to minimise total cost?

6. A company has 4 factories F1, F2, F3, & F4 manufacturing the same product. Production & row
material cost differ from factory to factory and are given in the following table in the first two rows.
The transportation cost from factories to sales departments S1, S2, S3, are also given. The last two
columns in the table give the sales price & the total requirement at each sales department.
The production capacity of each factory is given in the last row.

Factories F1 F2 F3 F4 Sales Requirement


Sales Dept. price/unit
Production cost/unit 15 18 14 13

Row material cost/unit 10 9 12 9

Transportation 3 9 5 5 34 80
Cost/unit S1
S2 1 7 4 5 32 120

S3 5 8 3 6 31 150

Availability 10 150 50 100

Determine the most profitable production & the distribution schedule & the corresponding profit. The
surplus product should be taken to yield zero profit.

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