Which will incur minimum transportation cost

Assignment Help Management Theories

Reference no: EM131459991

Question: ABC Chemicals manufacturers detergent in their three plants situated in Delhi, Bombay and Kolkata with capacities of 75,65 and 70 tonnes of detergent per day respectively. They market these from three warehouses situated in Nagpur, Lucknow and Baroda with requirements of 80,90 and 40 tonnes of detergent per day respectively.

The transportation cost per tonne of detergent from different plants to different warehouses is as follows:

From To

Nagpur Lucknow Baroda

Transport cost /tonne (Rs.)

Delhi 15 20 20

Bombay 30 40 30

Kolkata 20 30 40

Work out a distribution strategy, which will incur minimum transportation cost.

Reference no: EM131459991

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