Transportation method, Operation Management

Assignment Help:

Transportation  Method

We  solve the transportation  problem using the followings steps in order:

a. Structuring the problem  into the  transportation  framework.

b. Finding an initial solution.

c. Moving from the initial  solution  to th e optimal solution suing the transportation  algorithm of the transportation  method & if solution  is not optimal.

d. Revising the solution  until an  optimal  solution is obtained.

Step1 :L Structure  the problem into  transportation framework  as explained in the  followings.

First  of all the given  information  can be  put into  the transportation  framework  as under:

2317_Transportation  Method.png

The  above  solution indicate  that first  of  we have  transport 13 units  to warehouse A from factory X and Y this way the demand of warehouse A is met with. The remaining  2 units  at factory X are Sent to warehouse Y and this meet the demand of warehouse B only partially but the  supply  of factory X is exhausted. Then  we take the supply  available at factory Y and  from it transport 10 units  to warehouse  B thereby meeting it demand completely and the remaining 14 units are sent to warehouse  C. Then  we take the supply  at factory Z and  from it  we send 2 units  to warehouse C and the remaining 19  units to warehouse D. This way we meet the requirement of all warehouse from  the available supply  at various  factories without  considering the cost factor. The  initial solution has been shown the above  table. The relevant transportation cost of this initial solution will  be as under:

1765_Transportation  Method1.png

Cost of transportation 13 units  from X to A @ Rs. 3 per  units   =Rs. 39

Cost of transportation 2 units  from X to AB@ Rs. 2 per  units   =Rs. 40

Cost of transportation 10 units  from Y to B @ Rs. 1 per  units  = Rs. 10

Cost of transportation 14units  from Y to C @ Rs. 4 per  units   = Rs.56

Cost of transportation 2 units  from Z to C@ Rs. 4per  units     = Rs. 80

Cost of transportation 19 units  from Z to C@ Rs. 4per  units   =  Rs. 57

                                                                                     Rs. 174

Warehouse

1765_Transportation  Method1.png

Total transportation cost if  the initial  transportation  schedule is adopted = Rs. 174


Related Discussions:- Transportation method

Explain detail the five measures that unions, Detail the five measures that...

Detail the five measures that unions have taken in the collective bargaining process to introduce provisions that would protect employees displaced or laid off due to technology ch

Basic ethical principles among business courtesy and a bribe, In applying b...

In applying basic ethical principles where should you draw the line between a legitimate business courtesy and a bribe? ?PS: Can flow the book of Ethics and the conduct of business

Explain why organizations need good measures, 1. Both Juran and Deming adv...

1. Both Juran and Deming advocated ongoing product development. In fact, Deming's introductory lecture to Japanese managers in 1950 contrasted the old way of product design-desi

Explain the way of clear communication, On a recent trip to India, Mr. Yang...

On a recent trip to India, Mr. Yang, a prominent Chinese executive, dined with his client Himanshu Jain. Mr. Yang commented that the food was spicy, which Mr. Jain interpreted as a

Upper Control limit, Twenty-five samples of size thirty (30) were collected...

Twenty-five samples of size thirty (30) were collected and a total of 48 nonconforming items were found yielding p-bar = 0.064. The three sigma upper control limit (UCL) for a p co

Explain management principles applicable to organizing, The American Red Cr...

The American Red Cross has been asked to oversee the clean-up efforts in Japan after the earthquake and tsunami that occurred in March 2011. Analyze the management principles appli

Suitability of continuous or flow production, Suitability of continuous or ...

Suitability of continuous or flow Production In order that flow methods can operations satisfactorily a number of requirements must be met: 1.There Must be Substantially cons

Disadvantages of enterprise resource planning, Disadvantages of ERP Systems...

Disadvantages of ERP Systems 1. Expense and Time in Implementation: Getting the full benefits of WRP takes time and money: Although ERP offers many strategic advantages by streaml

Evaluate the two competitor''s strategies, As the industry watches to see h...

As the industry watches to see how United Airlines' strategy performs against American Airlines' strategy, management at United Airlines is anxiously monitoring market signs to det

Explain allocated cells a balanced transportation model, The number of allo...

The number of allocated cells a balanced transportation model with 3 sources and 3 destinations should have in order NOT to be degenerate is

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd