Question
1.ABC limited has three production shops supplying a product to five warehouses. The cost of production varies from shop to shop and cost of transportation
1.ABC limited has three production shops supplying a product to five warehouses. The cost of production varies from shop to shop and cost of transportation from one shop to a warehouse also varies. Each shop has a specific production capacity and each warehouse has certain amount of requirement. The cost of transportation are given below:
Warehouse
I II III IV V Supply Shop A 6 4 4 7 5 100
B 5 6 7 4 8 125
C 3 4 6 3 4 175
Demand 60 80 85 105 70 400
The cost of manufacturing the product at different production shop is
Shop Variable cost Fixed cost
A 14 7,000
B 16 4,000
C 15 5,000
a)Find the optimum quantity to be supplied from each shop to different warehouses at minimum total cost.
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