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

What are the advantages of the level capacity strategy, What are the advant...

What are the advantages of the Level capacity strategy? The advantages of the Level capacity strategy: a. Employment of operational resources at all times. b. Efficient p

Explain accounting, Explain accounting. Accounting: It is an art of c...

Explain accounting. Accounting: It is an art of classifying and recording data. Now there data refers to transactions having monetary or financial values. As per to this, acc

Global operations management, what are the key issues to be considered when...

what are the key issues to be considered when managing global management operations

Explain how you would work to make it a effective policy, Discuss an ineffe...

Discuss an ineffective health-care policy that you personally experienced in your practice, and describe the issues that you feel made it unsuccessful. Using instrumentalism as the

Explain what is the overall reliability of the call center, The service cen...

The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of thes

Explain what is the market share, What is the market share, sales levels an...

What is the market share, sales levels and profit for the last 5 years for Subway Restaurant and Chick-Fil-A restaurant?

State you views about supply chain management, Q. State you views about sup...

Q. State you views about supply chain management? Strategies to attain greater integration of the supply chain through raw material to the eventual final sale and disposal of a

Explain shipment to foreign markets, A U.S. manufacturer that exports goods...

A U.S. manufacturer that exports goods made at its U.S. plants for shipment to foreign markets

Explain collective bargaining and grievance procedure, When a union negotia...

When a union negotiates, with management, on behalf of its members to define and interpret employment contracts, it is known as: Answer (1) mediation. (2) Collective bargaining. (3

Flow process chart - process design, 1. Examine the flow process chart in t...

1. Examine the flow process chart in the figure and try to develop an improved method for the future, taking advantage of the technologies becoming available. Answer: There are

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