TRANSPORTATION MODEL Least Cost Method (LCM)
BY-Swapnil(26), sagar(02) & dwarkesh(05)
•The problem of finding the minimum-cost distribution of a given commodity from a group of supply centers (sources) i=1,…,m to a group of receiving centers (destinations) j=1,…,n •Each source has a certain supply (si) •Each destination has a certain demand (dj) •The cost of shipping from a source to a destination is directly proportional to the number of units shipped
CASE STUDY
?
Priyanshu enterprise has 3 plants at location P1,P2 & P3 which supplies 3 warehouses located at W1,W2,W3 monthly plant capacities are 20,28,17 units respectively Monthly warehouse requirments are 21,25,19 units respectively .Unit shipping cost (in Rs.) are given in the following table and determine the lowest cost
W1 P1
P2 P3 Demand
W2 6
7 5 25
W3 9
3 8 19
Supply 20
28 17 65
7
5 4 21
A company is spending Rs. 1000 on transportation of its units from these plants P1,P2,P3 to four distribution centers D1,D2,D3,D4. The supply and requirement of units, with unity cost of transportation are given as: Find the optimum solution of the model.
Initial basic feasible solution: 12 * 7 + 70 * 3 + 40 * 7 + 40 * 2 + 10 * 8 + 20 * 8 = Rs. 894.
Application of Transportation Model
Can be used to resolve distribution and location decisions
• The Cost of shipping one unit
The destination points and the demand per period at each
• Rational decisions in urban infrastructure projects
For making rational decisions investments in transportation
about
doc_498232102.pptx
BY-Swapnil(26), sagar(02) & dwarkesh(05)
•The problem of finding the minimum-cost distribution of a given commodity from a group of supply centers (sources) i=1,…,m to a group of receiving centers (destinations) j=1,…,n •Each source has a certain supply (si) •Each destination has a certain demand (dj) •The cost of shipping from a source to a destination is directly proportional to the number of units shipped
CASE STUDY
?
Priyanshu enterprise has 3 plants at location P1,P2 & P3 which supplies 3 warehouses located at W1,W2,W3 monthly plant capacities are 20,28,17 units respectively Monthly warehouse requirments are 21,25,19 units respectively .Unit shipping cost (in Rs.) are given in the following table and determine the lowest cost
W1 P1
P2 P3 Demand
W2 6
7 5 25
W3 9
3 8 19
Supply 20
28 17 65
7
5 4 21
A company is spending Rs. 1000 on transportation of its units from these plants P1,P2,P3 to four distribution centers D1,D2,D3,D4. The supply and requirement of units, with unity cost of transportation are given as: Find the optimum solution of the model.
Initial basic feasible solution: 12 * 7 + 70 * 3 + 40 * 7 + 40 * 2 + 10 * 8 + 20 * 8 = Rs. 894.
Application of Transportation Model
Can be used to resolve distribution and location decisions
• The Cost of shipping one unit
The destination points and the demand per period at each
• Rational decisions in urban infrastructure projects
For making rational decisions investments in transportation
about
doc_498232102.pptx