Using the Vogel Approximation Method (VAM), determine the optimal allocation of thetruckloads of the Sunray Transport Company between different warehouses and distributioncentres that will minimize the cost and fulfill the demand of all the distribution centres. (Usemanual process) 2. Sunray Transport company ships truckloads of grain from three warehouses to four distributioncentres. The supply (in truck loads), the demand (in truckloads), and the unit transportation costsper truckload on the different routes are summarized in table below.Distribution centresWarehousesDistributionDistributionDistributionSupply(intruck loads)Distributioncentre 1centre 2centre 3centre 4Warehouse 1$10$2$20$1115Warchouse 2$12$7$9$2025Warehouse 3$4$14$16$1810Demand (in5151515truck loads)Now, Sunray Transport Company wants to ship all the truckloads at a minimum cost and wantsto fulfill the demand of all the distribution centres. Based on the information given above, answerthe following questions. Also, clearly write down each of the steps.

a) Total Demand = 5+15+15+15 = 50. Total Supply = 15+!5+10 = 40 Demand is more than Supply.…

Answered: 2. Sunray Transport company ships…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Using the Vogel Approximation Method (VAM), determine the optimal allocation of the
truckloads of the Sunray Transport Company between different warehouses and distribution
centres that will minimize the cost and fulfill the demand of all the distribution centres. (Use
manual process)

2. Sunray Transport company ships truckloads of grain from three warehouses to four distribution
centres. The supply (in truck loads), the demand (in truckloads), and the unit transportation costs
per truckload on the different routes are summarized in table below.
Distribution centres
Warehouses
Distribution
Distribution
Distribution
Supply(in
truck loads)
Distribution
centre 1
centre 2
centre 3
centre 4
Warehouse 1
$10
$2
$20
$11
15
Warchouse 2
$12
$7
$9
$20
25
Warehouse 3
$4
$14
$16
$18
10
Demand (in
5
15
15
15
truck loads)
Now, Sunray Transport Company wants to ship all the truckloads at a minimum cost and wants
to fulfill the demand of all the distribution centres. Based on the information given above, answer
the following questions. Also, clearly write down each of the steps.

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