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

Why risk interviews are often completed with subject matter, After a risk w...

After a risk workshop has been completed, risk interviews are often completed with subject matter experts. Assess the value of the interviews to identify risk response strategies.

Decision making process, You have been asked to undertake a management acco...

You have been asked to undertake a management accounting review of an activity, a service or an event, which has occurred or is to occur in either your area of work or in an area o

Finite loading , Finite Loading Finite loading is an alternative sch...

Finite Loading Finite loading is an alternative scheduling technique that combines into a single system the loading sequencing and detailed scheduling. In contrast to infini

Explain inventory procurement and carrying cost, Explain Inventory Procurem...

Explain Inventory Procurement Cost and Inventory Carrying Cost. Inventory Procurement Cost and Inventory Carrying Cost: Inventory is a detailed list of such movable items which

Define how this influence of culture can effect organization, The Japanese ...

The Japanese firm Matsushita has a business philosophy from the strong founder Konosuke. This business philosophy was codified as the "Seven Spiritual Values" of Matsushita that al

Why expected profit to be positive, A job shop receives an order for high p...

A job shop receives an order for high precision formed parts. The cost of producing each part is approximately $20,000. The customer requires that either 4 or 5 good parts be suppl

Computed marginal profit for various costing profiles, An HMO requests your...

An HMO requests your hospital services for its obstetrics division. It offers to pay your hospital $2,000 for a vaginal delivery without complications (DRG 373). You look at the St

Dispatching - production control, Dispatching - Production Control The f...

Dispatching - Production Control The function of routing and scheduling as discussed above are paperwork only. No actual production has yet been started. Dispatching is the part

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