Homework Answers
Products Availability in Ware Houses A1 - 100, A2 - 50 & A3 - 75.
Total Products Available = 225
Demand in Branches T1 - 35, T2 - 49, T3 - 25, T4 - 58 & T5 - 58.
Total Demand for the product = 225
Demand & Supply are Same. We can satisfy our demand with our supply.
Cost of transportation from ware house to branches are as follows:
| T1 | T2 | T3 | T4 | T5 | |
| A1 | 11 | 14 | 9 | 7 | 18 |
| A2 | 8 | 6 | 15 | 13 | 7 |
| A3 | 9 | 12 | 13 | 9 | 10 |
First Trial : -
| T1 | T2 | T3 | T4 | T5 | |
| A1 | 35 | 49 | 16 | 0 | 0 |
| A2 | 0 | 0 | 9 | 41 | 0 |
| A3 | 0 | 0 | 0 | 17 | 58 |
Cost of Transportation = 35*11+ 49*14+16*9+9*15+41*13+17*9+58*10 = 2,616
Second Trial : -
| T1 | T2 | T3 | T4 | T5 | |
| A1 | 0 | 0 | 0 | 42 | 58 |
| A2 | 0 | 9 | 25 | 16 | 0 |
| A3 | 35 | 40 | 0 | 0 | 0 |
Cost of Transportation = 35*9+40*12+9*6+25*15+16*13+42*7+58*18 = 2,770
Third Trial : -
| T1 | T2 | T3 | T4 | T5 | |
| A1 | 17 | 0 | 25 | 58 | 0 |
| A2 | 0 | 49 | 0 | 0 | 1 |
| A3 | 18 | 0 | 0 | 0 | 57 |
Cost of Transportation = 17*11+25*9+58*7+49*6+1*7+18*9+57*10 = 1,851
This is the Least Cost of Transportation. As we have choosen the transportation from least cost of transportation per unit to high cost of transportation per unit.
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