A product is manufactured by four factories A, B, C and D. The unit production costs in them are ETB 2, ETB 3, ETB 1 and ETB 5 respectively. Their production capacities are 50, 70, 30 and 50 units respectively. These factories supply the product to four stories, demands of which are 25, 35, 105, and 20 units respectively. Unit transportation cost in ETB for each factory to each store is given in the table below. Stores 1 3 4 A 6. 11 Factories В 10 8. 7 13 3 9 12 D 4 6. 8 3 Determine the transportation plan to minimize the total production-cum-transportation cost by using: a. Vogel's Approximation Method (VAM) for initial basic feasible solution b. Find the optimal solution using Modified Distribution Method (MODI) method.
A product is manufactured by four factories A, B, C and D. The unit production costs in them are ETB 2, ETB 3, ETB 1 and ETB 5 respectively. Their production capacities are 50, 70, 30 and 50 units respectively. These factories supply the product to four stories, demands of which are 25, 35, 105, and 20 units respectively. Unit transportation cost in ETB for each factory to each store is given in the table below. Stores 1 3 4 A 6. 11 Factories В 10 8. 7 13 3 9 12 D 4 6. 8 3 Determine the transportation plan to minimize the total production-cum-transportation cost by using: a. Vogel's Approximation Method (VAM) for initial basic feasible solution b. Find the optimal solution using Modified Distribution Method (MODI) method.
Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Transcribed Image Text:3. A product is manufactured by four factories A, B, C and D. The unit production costs in them
are ETB 2, ETB 3, ETB 1 and ETB 5 respectively. Their production capacities are 50, 70, 30
and 50 units respectively. These factories supply the product to four stories, demands of which
are 25, 35, 105, and 20 units respectively. Unit transportation cost in ETB for each factory to
each store is given in the table below.
Stores
1
3
4
A
2
4
6.
11
Factories
В
10
8.
C
13
3
9
12
D
4
8
Determine the transportation plan to minimize the total production-cum-transportation cost by
using:
a. Vogel's Approximation Method (VAM) for initial basic feasible solution
b. Find the optimal solution using Modified Distribution Method (MODI) method.
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