a. Vogel's Approximation Method (VAM) for initial basic feasible solution b. North West Corner Method (NWCM) c. Least Cost Method (LCM)

Practical Management Science
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Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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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.
Factories
B
C
D
1
2
10
13
4
Stores
2
4
8
3
6
3
6
7
9
8
HUSES
4
11
5
12
3
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. North West Corner Method (NWCM)
c. Least Cost Method (LCM)
Transcribed Image Text: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. Factories B C D 1 2 10 13 4 Stores 2 4 8 3 6 3 6 7 9 8 HUSES 4 11 5 12 3 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. North West Corner Method (NWCM) c. Least Cost Method (LCM)
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