Question

The XYZ Chicharon has three supply points here in Davao City, one located in Matina, the other is at Bankerohan and lastly at Toril and three distribution stores in Ma-a, Sasa and Agdao. The capacities of the three supply points are 50, 45 and 75 per kilo per week. The weekly demands of the three distribution stores are 40, 50 and 80 per kilo per week.

The supply points are able to supply the following number of kilo per week :

Supply Points	Supply
Matina Bankerohan Toril	50 45 75

The requirements of the distribution in number of kilo per week :

Distribution Stores	Demand
Ma-a Agdao Sasa	40 50 80

The transportation costs (which depend on the distance, traffic and cost of gas) between the supply points and the distribution stores is as follows:

Source/Destination	Ma-a	Agdao	Sasa	Supply
Bankerohan	100	200	300	50
Sasa	100	250	200	45
Toril	250	300	350	75
Demand	40	50	80

XYZ Chicharon is facing a transportation problem. As a manufacturer, XYZ Chicharon would like to minimize the transportation costs while meeting the demand at each destination and not exceeding the supply at each source.

1. Solve using new west corner rule and stepping method. Show solution and explain the results.
2. In this problem, what another problem can we make related to assignment model? Show solution and explain the results.

Answer 1

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