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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
- 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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