A manufacturer produces sport wheels at three plants located in towns A, B and C. The wheels are sent to three warehouses located at X, Y and Z. The plant in Town A has 400 units available each month, Town B has 600 units and Town C has 800 units. The requirements of warehouses at X, Y and Z are 200, 500 and 1,100 respectively. The transportation costs (in RM) for various routes are given in the table below. The company would like to determine the least-cost way to meet the demand at each of the warehouses. Factory Warehouse X Y A 2 2 3 B 1 3 4

Practical Management Science
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A manufacturer produces sport wheels at three plants located in towns A, B and C. The
wheels are sent to three warehouses located at X, Y and Z. The plant in Town A has
400 units available each month, Town B has 600 units and Town C has 800 units. The
requirements of warehouses at X, Y and Z are 200, 500 and 1,100 respectively. The
transportation costs (in RM) for various routes are given in the table below. The company
would like to determine the least-cost way to meet the demand at each of the warehouses.
Factory
Warehouse
X
Y
A
2
2
В
1
6.
1
3
4
Formulate an initial feasible solution using the northwest corner rule.
а.
b.
Use the stepping stone method to find the optimal solution that will minimize
transportation cost of this problem.
Transcribed Image Text:A manufacturer produces sport wheels at three plants located in towns A, B and C. The wheels are sent to three warehouses located at X, Y and Z. The plant in Town A has 400 units available each month, Town B has 600 units and Town C has 800 units. The requirements of warehouses at X, Y and Z are 200, 500 and 1,100 respectively. The transportation costs (in RM) for various routes are given in the table below. The company would like to determine the least-cost way to meet the demand at each of the warehouses. Factory Warehouse X Y A 2 2 В 1 6. 1 3 4 Formulate an initial feasible solution using the northwest corner rule. а. b. Use the stepping stone method to find the optimal solution that will minimize transportation cost of this problem.
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