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

Discuss about the holding inventory control systems, Discuss about the Hold...

Discuss about the Holding Inventory Control Systems. Holding Inventory Control Systems: Holding great levels of inventory enables an organisation to be extra flexible to

Explain how many hours would the average laborer, In December, general moto...

In December, general motors produced 7,200 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor hour during that

Explain developing the project plan, In terms of developing the project pla...

In terms of developing the project plan, identify which, if any, of the project steps are more integral to the project plan than any others. Support your response

Explain how many bagels should the store manager expect, (CPG Bagels) CPG ...

(CPG Bagels) CPG Bagels starts the day with a large production run of bagels. Throughout the morning, additional bagels are produced as needed. The last bake is completed at 3 p

Define contribute toward building a more ethical environment, How can you c...

How can you contribute toward building a more ethical environment?

Define strong technical skills or strong communications, What types of peop...

What types of people have more difficulty being team players? What helps promote good team player behaviour? 3. What do you think is more important for a good IT professional: stro

Operation Management, A paper mill produces two grades of paper viz., X and...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Explain functions and objectives of trade unions, Explain functions and obj...

Explain functions and objectives of trade unions. Functions and Objectives of Trade Unions: The functions of trade unions are: (i) The provision of friendly services which

Scrutinise the process sequences and calculate annual cost, Scrutinise the ...

Scrutinise the Process Sequences and Calculate Annual Cost A company produces a range of product, but the dominant demand is for three of them, A, B and C. The table shows the

Explain the features of six sigma, Question 1: Explain the features o...

Question 1: Explain the features of Six Sigma. • shifts the paradigm quality as the cause of good business performance • The philosophy is to make fewer mistakes. • Is a

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