Operations Management
Operations Management
13th Edition
ISBN: 9781259667473
Author: William J Stevenson
Publisher: McGraw-Hill Education
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Chapter 11, Problem 15P
Summary Introduction

To determine: The minimum cost using transportation method.

Introduction: Aggregate planning using transportation method helps to attain minimum cost using the optimal plan. The major advantage of transportation method is to achieve the optimal solution using optimal plans.

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A. An Electrical Company has three workshops in Koforidua, Accra and Kumasi. These workshops produce the following quantities of electric fan. Workshops Monthly production (units) Koforidua 130 Аccra 70 Kumasi 100 The monthly demand for these fans in three towns: Sunyani, Cape Coast and Ho is given below: Destination Weekly Demand (units) Sunyani 80 Саре Сoast 110 Но 60 The unit transportation costs per unit (in GH¢000) from the sources to the destinations are as shown: To From Sunyani Саре Сoast Но Koforidua 9. 14 12 Accra 11 10 6. Kumasi 12 15 00
4.Compare the transportation costs for an online business such as Amazon and a retailer such as Home Depot when selling home-improvement materials.
What is the importance of proper management of transportation, storage in handling of raw materials?

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