Question
A company has three factories A, B and C which supply to four warehouses P, Q, R and S. The monthly production capacity in
A company has three factories A, B and C which supply to four warehouses P, Q, R and S. The monthly production capacity in tons at A, B and C is 120, 80, and 200 respectively. The monthly requirement in tons for the warehouses P, Q, R and S is 60, 50,140 and 50 respectively. The transportation cost in K per to is given below: A B C Factories Warehouses P 4 3 7 Q 5 8 4 R 2 4 7 S 5 8 4 Using V.A.M, determine the transportation schedule that minimise the total transportation costs. 20 marks
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Management and Cost Accounting
Authors: Colin Drury
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