A company that has cement factories in Denizli, İzmir and Uşak will transport the cements to the consumption region 1, 2 and 3. The cement production capacities of the factories are 200 tons for the factory in Denizli, 300 tons for the factory in İzmir and 450 tons for the factory in Usak. Demand of the first consumption region is 250, demand of the second region is 100, demand of the third region is 225 and demand of fourth region is 325 tons of cement. The transportation cost between factories and consumption areas is as below table per ton: Factories 1. Region 2. Region 3. Region 4. Region Denizli 15 18 12 13 İzmir 10 10 11 9 Usak 8 5 7 8 According to these data; 1) Make the initial distribution of the enterprise according to the Vogel’s Approximation Method (VAM) and calculate the total transportation cost. 2) Determine the distribution that minimizes the total transportation cost according to the (MODI) method.

A company that has cement factories in Denizli, İzmir and Uşak will transport the cements to the consumption region 1, 2 and 3. The cement production capacities of the factories are 200 tons for the factory in Denizli, 300 tons for the factory in İzmir and 450 tons for the factory in Usak. Demand of the first consumption region is 250, demand of the second region is 100, demand of the third region is 225 and demand of fourth region is 325 tons of cement. The transportation cost between factories and consumption areas is as below table per ton: Factories 1. Region 2. Region 3. Region 4. Region Denizli 15 18 12 13 İzmir 10 10 11 9 Usak 8 5 7 8 According to these data; 1) Make the initial distribution of the enterprise according to the Vogel’s Approximation Method (VAM) and calculate the total transportation cost. 2) Determine the distribution that minimizes the total transportation cost according to the (MODI) method.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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