Transportation model
This document describes a transportation model called the Least Cost Method (LCM) to determine the minimum-cost distribution of goods from supply centers to receiving centers. The model considers: 1) Multiple sources each with a certain supply 2) Multiple destinations each with a certain demand 3) The cost of shipping directly proportional to units shipped from each source to destination. It then provides a case study example of applying this model to determine the lowest cost of shipping goods from 3 plants (supply centers) with certain monthly capacities to 3 warehouses (receiving centers) with certain monthly requirements, where the unit shipping cost between each plant and warehouse is given. The model aims to resolve distribution and location decisions at minimal cost.
Transportation model
- 1. TRANSPORTATION MODEL Least Cost Method (LCM) BY-Swapnil(26), sagar(02) & dwarkesh(05)
- 2. The problem of finding the minimum-cost distribution of a given commodity from a group of supply centers (sources) i=1,,m to a group of receiving centers (destinations) j=1,,n Each source has a certain supply (si) Each destination has a certain demand (dj) The cost of shipping from a source to a destination is directly proportional to the number of units shipped
- 11. Priyanshu enterprise has 3 plants at location P1,P2 & P3 which supplies 3 warehouses located at W1,W2,W3 monthly plant capacities are 20,28,17 units respectively Monthly warehouse requirments are 21,25,19 units respectively .Unit shipping cost (in Rs.) are given in the following table and determine the lowest cost W1 W2 W3 Supply P1 7 6 9 20 P2 5 7 3 28 P3 4 5 8 17 Demand 21 25 19 65 CASE STUDY
- 17. A company is spending Rs. 1000 on transportation of its units from these plants P1,P2,P3 to four distribution centers D1,D2,D3,D4. The supply and requirement of units, with unity cost of transportation are given as: Find the optimum solution of the model.
- 18. Initial basic feasible solution: 12 * 7 + 70 * 3 + 40 * 7 + 40 * 2 + 10 * 8 + 20 * 8 = Rs. 894.
- 19. Can be used to resolve distribution and location decisions The Cost of shipping one unit The destination points and the demand per period at each Rational decisions in urban infrastructure projects For making rational decisions about investments in transportation Application of Transportation Model