Here Demand >Supply resulting in short-supply to turn into a balanced transportation problem we will add a dummy source with the short supply considering 0 cost of transporting from Dummy Source to destinations
|
K |
L |
M |
N |
Supply |
|
|
C |
16 |
10 |
15 |
28 |
1900 |
|
D |
8 |
13 |
35 |
16 |
2000 |
|
Dummy Source |
0 |
0 |
0 |
0 |
600 |
|
Demand |
1900 |
900 |
700 |
1000 |
Let,
Xij = number of units transported from Plat i to Customer location j where i = [C,D and Dummy Source] and j = [K,L,M,N] respectively
Objective is to minimize cost = Min 16x11+10x12+15x13+28x14+8x21+13x22+35x23+16x24+0x31+0x32+0x33+0x34
Subject to,
Supply constraints
x11+x12+x13+x14 <= 1900
x21+x22+x23+x24 <= 2000
x31+x32+x33+x34 <= 600
Demand Constraints (Demand Should be exactly fulfilled so equal sign in the constraint)
x11+x21+x31 = 1900
x12+x22+x32= 900
x13+x23+x33 = 700
x14+x24+x34 =1000
Xij >= 0(Non-negativity constraint)
Solving in excel, we get below transportation schedule:
Send 300 units from C to K
Send 900 units from C to L
Send 700 units from C to M
Send 0 units from C to N
Send 1600 units from D to K
Send 0 units from D to L
Send 0 units from D to M
Send 400 units from D to N
The total monthly transportation cost is $43500
The Distribution centre K receives 1900 units
The Distribution centre L receives 900 units
The Distribution centre M receives 700 units
The Distribution centre N receives 400 units
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