Answer to Question #346978 in Operations Research for Kunu

Question

3. A product is manufactured by four factories A, B, C and D. The unit production costs in them are ETB 2, ETB 3, ETB 1 and ETB 5 respectively. Their production capacities are 50, 70, 30 and 50 units respectively. These factories supply the product to four stories, demands of which are 25, 35, 105, and 20 units respectively. Unit transportation cost in ETB for each factory to each store is given in the table below.

Stores

1 2 3 4

2 4 6 11

10 8 7 5

13 3 9 12

4 6 8 3

A

Factories B

C

D

Determine the transportation plan to minimize the total production-cum-transportation cost by using:

a. Vogel’s Approximation Method (VAM) for initial basic feasible solution

b. Find the optimal solution using Modified Distribution Method (MODI) method

Answer 1

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