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Question:  A company has five plants P,Q,R,S, and T from which it supplies to five markets A,B,C,D, and E. Determine the optimal transportation plan from the following data giving the plant to market shifting cost, quantities available at each plant and quantities required at each market. Provide detailed solution by using each of the following methods

1) North West Corner rule (NWC)

2) Least Cost Method (LCM)

3) Unit Cost-Penalty / Vogel’s Approximation Method (VAM)

Also determine total transportation cost in each case. Compare your solutions and determine the best method.

Origin

P

Q

R

S

T

Supply

A

5

7

8

4

12

60

B

4

4

6

10

5

40

C

6

7

7

5

9

50

D

3

4

8

12

8

55

E

5

6

3

7

4

60

Demand

70

45

40

48

62

 

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MTH601 (Operation Research) Assignment No.2 Idea Solution Part (Least Cost Method (LCM))

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