Transportation Problem Problem 1: The RSG Gravel Supply Company has received a contract to supply gravel to three new road projects located at three different locations Project A needs 174 truckloads; project 8, 204 truckloads; and project C, 143 The company has three gravel warehouses located in three different places Warehouse 1 has 158 truckloads available; warehouse 2 has 184; and warehouse 3 has 179. The costs of transportation from the warehouse to the projects are: From warehouse 1 to projects A, B, C, P4, PS and P8 per truckload respectively. From warehouse 2 to projects A, B, C, P15, P24 and P16, and From warehouse 3 to projects A, B, C, PB, P16 and 924. The objective is to design a plan of distribution that will minimize the cost of transportation Required: 1. Use the Stepping Stone Method to solve the problem. 2. The solution should include/show a The initial distribution plan b. Cost computation for each table. c. Improvement (index) computation for all vacant cells. d. Decision based on the optimum(final) table The Transportation Table Warehouses 1 DECISION: 2 3 Demand Transport from: Warehouse Warehouse Warehouse Warehouse Warehouse 1 2 A Demand 174 A 16 90 . Outlets A Project Project Projects B Project Project Project 18 7 To: 4 204 B 4 34 90 16 Problem 2: Use the Stepping Stone method to fill-out the unbalanced table. Write the decision and minimum cost 1 . C 143 . 50 16 100 34 Supply 158 Supply 50 184 179 521 #of truckloads Minimum Cost: Total Cost Problem 1: The LMV Company has just awarded an engine development contract. The contract terms require that at least 5 other smaller companies be awarded subcontracts for a portion of the total work. So LMV bids for small companies A, B, C, D and E to do the subcontract works in five areas: V, W, X, Y and Z. The bids are as follows: V Company A 145 B 150 C 160 D 130 120 155 125 E 160 125 165 185 135 Which bids should be given to which company in order to fulfill the contract terms at the least cost? SOLUTION: Table 2: Table 3: Decision: A B C D E AB D E| V V Company W Subcontract Works (in thousands of pesos) W Y 145 W X X 160 155 170 Y X 175 Y 140 180 160 Subcontract Work Total Minimum Cost: Z Z Z 130 145 140 145 120 Cost Transportation Problem Problem 1: The RSG Gravel Supply Company has received a contract to supply gravel to three new road projects located at three different locations Project A needs 174 truckloads; project 8, 204 truckloads; and project C, 143 The company has three gravel warehouses located in three different places Warehouse 1 has 158 truckloads available; warehouse 2 has 184; and warehouse 3 has 179. The costs of transportation from the warehouse to the projects are: From warehouse 1 to projects A, B, C, P4, PS and P8 per truckload respectively. From warehouse 2 to projects A, B, C, P15, P24 and P16, and From warehouse 3 to projects A, B, C, PB, P16 and 924. The objective is to design a plan of distribution that will minimize the cost of transportation Required: 1. Use the Stepping Stone Method to solve the problem. 2. The solution should include/show a The initial distribution plan b. Cost computation for each table. c. Improvement (index) computation for all vacant cells. d. Decision based on the optimum(final) table The Transportation Table Warehouses 1 DECISION: 2 3 Demand Transport from: Warehouse Warehouse Warehouse Warehouse Warehouse 1 2 A Demand 174 A 16 90 . Outlets A Project Project Projects B Project Project Project 18 7 To: 4 204 B 4 34 90 16 Problem 2: Use the Stepping Stone method to fill-out the unbalanced table. Write the decision and minimum cost 1 . C 143 . 50 16 100 34 Supply 158 Supply 50 184 179 521 #of truckloads Minimum Cost: Total Cost Problem 1: The LMV Company has just awarded an engine development contract. The contract terms require that at least 5 other smaller companies be awarded subcontracts for a portion of the total work. So LMV bids for small companies A, B, C, D and E to do the subcontract works in five areas: V, W, X, Y and Z. The bids are as follows: V Company A 145 B 150 C 160 D 130 120 155 125 E 160 125 165 185 135 Which bids should be given to which company in order to fulfill the contract terms at the least cost? SOLUTION: Table 2: Table 3: Decision: A B C D E AB D E| V V Company W Subcontract Works (in thousands of pesos) W Y 145 W X X 160 155 170 Y X 175 Y 140 180 160 Subcontract Work Total Minimum Cost: Z Z Z 130 145 140 145 120 Cost
