) Determine an initial solution and overall distribution cost using: a)the Minimum cell cost method, b) the Vogel’s approximation method (VAM)

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Question 3

 

  1. a) The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D):

 

 

 

The following represents the transportation cost between three warehouses (1, 2, 3) and four markets (A, B, C, D):

 

 

From Warehouse

To Market

Supply

A

B

C

D

1

14

24

18

28

48

2

17

18

25

16

56

3

30

16

22

30

32

Demand

41

34

35

20

 

 

i) Determine an initial solution and overall distribution cost using:

a)the Minimum cell cost method,

b) the Vogel’s approximation method (VAM)

 

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