Prof.

Vinay Pandit

TRANSPORTATION PROBLEMS

Solve the following transportation problem for the total transportation cost

1)
D1 D2 D3 D4 capacity
O1 6 5 1 3 100
O2 4 8 7 2 125
O3 6 3 9 3 75
Demand 70 90 80 60

2)
D1 D2 D3 D4 capacity
O1 3 1 3 5 120
O2 2 6 1 3 95
O3 5 1 4 8 85
Demand 50 60 90 100

3)
D1 D2 D3 D4 capacity
O1 4 5 3 6 50
O2 3 6 7 3 70
O3 1 4 1 2 80
Demand 50 40 90 20

4)
A distribution system has the following constraints
Factory Capacity (units) Warehouse Demand (units)
A 45 I 25
B 15 II 55
C 40 III 20

The transportation cost per unit (in Rs.) associated with each route are as follows:
From I II III
A 10 7 8
B 15 12 9
C 7 8 12

Find the transportation cost

Logistics Management 1 TYBMS

 Prof. Vinay Pandit

5) Solve the transportation problem for the total transportation cost

Destination
Source D1 D2 D3 D4 supply
A 15 18 22 16 30
B 15 19 20 14 40
C 13 16 23 17 30
Demand 20 20 25 35 100

Is the optimal solution obtained by you is a unique one? If not, why? What is an alternate optimum
then?

6) National oil company (NOC) has three refineries and four depots. Transportation cost per ton,
Capacities and requirements are as follows:

D1 D2 D3 D4 Capacity (tons)
R1 5 7 13 10 700
R2 8 6 14 13 400
R3 12 10 9 11 800
Requirements (tons) 300 600 700 400
Determine the allocation of output.

7) Cement manufacturing company wishes to transport cement from its three factories P, Q and to five
distribution depots situated at A, B, C, D and E
The quantities produced at the factories per week, requirements at the depots per week and
respective transportation cost per tone are given in the table below:
Depots
Factories A B C D E Tones available
P 4 1 3 4 4 60
Q 2 3 2 2 3 35
R 3 5 2 4 4 40
Tones required
22 45 20 18 30 135

Determine the cost distribution programme for the company.

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 Prof. Vinay Pandit

9) A plastic modeling company produces homogeneous molding in its three factories X, Y and Z. These
have to be distributed to the three wholesale outlets A, B and C. Data regarding unit transportation
cost, capacity and demand are given below

Factories A B C Factory capacity (units)

X 7 8 5 200
Y 11 3 6 150
Z 8 5 7 350
Outlet demand (units) 150 175 425

Find the allocation of factory outputs to the wholesale outlets and asses the total cost

10) A company has factories at F1, F2and F3 which manufactures and supplies the same commodity to
sales depots at D1, D2, D3 and D4. Production capacity of factories in any month is 1600, 1500 and
1900 units respectively. Sales depots have standardized their requirement over a period of time and
have a constant in- takes month after month. Their demand in any month is 800, 900, 1700 and 1600
units respectively. Depending on the location of the factories and the process involved, the
manufacturing costs vary from factory to factory as given below:

MANUFACTURING COST PER UNIT

F1 F2 F3
14 10 13

Depending on the relative location, the unit transportation cost also varies. Details of the same are
given below:
D1 D2 D3 D4
F1 2 6 3 7
F2 1 5 4 5
F3 4 4 3 6

Depots are distributed all over the country. Depending on the demand, competition and the factory of
origin (quality difference) the unit sale realization varies in a factory depot combination basis, as
reproducer below:

Sales Realisation (Rs. /unit)

D1 D2 D3 D4
F1 40 38 45 50
F2 30 32 28 30
F3 50 45 42 40

The product in chare wants to draw out a schedule of manufacturing/transportation/sale which would
maximize overall profits to the company.
Use a transportation model to arrive at the profits maximization allocation.

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 Prof. Vinay Pandit

11) A company has three plants located at different places put producing an identical product. The cost
of production distribution cost for each plant to the three different warehouses, the sale price at each
warehouse and the individual capacities for the plant and warehouse are given below:

Plant F1 F2 F3
Raw material 15 18 14
Other expenses 10 9 12

Distribution cost to Warehouse F1 F2 F3 S.P Warehouse capacity

W1 3 9 5 34 80
W2 1 7 4 32 110
W3 5 8 3 31 150
Capacity of the plant 150 100 130

a) Establish a suitable table giving net profit/loss for a unit produced at different plants and
distributed at different warehouses.
b) Introduced a suitable dummy warehouse/ plant so as to match the capacities of the plants and
warehouses.
c) Find a distribution pattern to find profit/ loss.

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 Prof. Vinay Pandit

12) A company manufactures a certain product at two factories and distributes it to three warehouses.
Each factory runs both a regular shift and when necessary, an over time shift for any remaining
production requirement. Production costs differ between factories and the selling price of the product
varies at the different warehouse locations. The pertinent information is given in the table I

Table I
Factory Weekly production capability (units) Unit Production Cost
Regular Overtime Regular Overtime
1 100 40 Rs. 17 Rs. 24
2 150 30 Rs. 18 Rs.23

Warehouse Weekly requirement unit Unit selling price

1 80 Rs. 35
2 120 Rs. 37
3 70 Rs. 34

Transportation cost (Rs. per unit)

Warehouse
Factory 1 2 3
1 6 7 6
2 4 2 8

The object is to select that combination of regular and overtime production which when allocated to
shipping in an optimal fashion will maximize profit.

Questions:
• Set up the transportation table for an initial solution
• Obtain an IBFS

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