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Heshima Ltd. has three factories F 1 , F 2 and F 3 which manufacture computers. The company markets the computers through four outlets D

  1. Heshima Ltd. has three factories F1, F2 and F3 which manufacture computers. The company markets the computers through four outlets D1, D2, D3 and D4. The following table shows the inventories (in thousands of units) of computers in the three factories:

Factory

F1

F2

F3

Inventory

14

27

14

The company is required to supply the four outlets. The requirement of the outlets (in thousands units) is as follows:

Outlet

D1

D2

D3

D4

Demand

15

19

11

10

The following table shows the cost (in shilling) of transporting one computer from the factories to the outlets

Factory

Outlet

D1

D2

D3

D4

F1

9

7

10

8

F2

8

11

9

11

F3

13

10

12

10

Required: The minimum total transportation cost using Vogels Approximation Method (VAM) [10 marks]

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