This document presents a transportation problem involving 3 production facilities and 4 warehouses. The facilities have weekly production capacities of 7, 10, and 18 units. The warehouses have weekly demands of 5, 8, 7, and 15 units. The transportation costs between each facility-warehouse pair are given.
Using the Vogel's Approximation Method, an initial basic feasible solution is found allocating specific facilities to meet warehouse demands. The MODI method is then used to test for optimality. Some reallocations are made to improve the solution.
The optimal solution allocates production from the facilities to warehouses to meet demands at a total transportation cost of Rs. 900.
3. • QUESTION:
A company has three production
facilities P1, P2 and P3 with production
capacity of 7, 10 and 18 units per week
of a product, respectively. These units
are to be shipped to four warehouses D1,
D2, D3 and D4 with requirement of 5, 8,
7 and 15 units per week, respectively.
The transportation cost per unit
between factories to warehouses are
given in the table below.