Transportation Problem

Topics: Costs, Variable cost, Marginal cost Pages: 3 (567 words) Published: October 6, 2012
Transportation Problem Amit K. Bardhan

Transportation Problem
Amit K. Bardhan
Faculty of Management Studies, University of Delhi

Transportation problem
Transportation Problem Amit K. Bardhan

A transportation problem basically deals with the problem, which aims to find the best way to fulfill the demand of n demand points using the capacities of m supply points. While trying to find the best way, generally a variable cost of shipping the product from one supply point to a demand point or a similar constraint should be taken into consideration.

Transportation problem
Transportation Problem Amit K. Bardhan

A distribution-type problem in which supplies of goods that are held at various locations are to be distributed to other receiving locations. The solution of a transportation problem will indicate to a manager the quantities and costs of various routes and the resulting minimum cost. Used to compare location alternatives in deciding where to locate factories and warehouses to achieve the minimum cost distribution configuration.

Problem 1: Transporting coal
Transportation Problem Amit K. Bardhan

The CoalCo company produces coal at four mines and ships it to four power plants (P1-P4). The cost per ton (in Rs. 00’s) of producing coal and the production capacity (in tons) for each mine are known. The cost (in Rs. 00’s) of shipping a ton of coal from a mine to each plant is available as well. The following table provides the data. P1 9 7 5 3 110 P2 15 15 5 6 115 P3 8 14 11 8 135 P4 10 12 12 11 130 Capacity 125 100 150 120 Cost 50 57 55 61

Mine 1 Mine 2 Mine 3 Mine 4 Demand

Problem 1: Transporting coal(contd.)
Transportation Problem Amit K. Bardhan

(a) CoalCo wishes to minimize the cost of transporting coal from its mines to its plants. What is the minimum cost? (b) What is the transportation schedule that achives the minimum cost in (a)?

Problem 2: Planning procurement
Transportation Problem Amit K. Bardhan

An automobile...
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