Management Science (MGT-301)

Courtesy of-Kamrul, Zonayed and Fahad||Department of Management||University of Dhaka

1

Distribution Models

1. Class Problem Date 15-04-15 ABC Steel Company has 3 processing plants, one at Fenny with supply capacity of 450 tons a day,

another at Tangail with supply capacity of 350 tons a day and the third and last one at Khulna with

supply capacity of 395 per day.

It has three warehouses is in Dhaka, Sylhet, and Bogura. The warehouses need, if possible, 385,275 and

520 tons of steel each day respectively to meet their distribution demand.

The shipping cost form each plant to each warehouses are given below

From To Cost

Fenny Dhaka 12.8

Fenny Sylhet 13.6

Fenny Bogura 12.5

Tangail Dhaka 11.8

Tangail Sylhet 13.5

Tangail Bogura 14.3

Khulna Dhaka 15.6

Khulna Sylhet 12.2

Khulna Bogura 13.4

a. ABC’s problem is to plan the shipment at the least possible cost, solve the transportation

problem

b. Find the total cost of distribution

Management Science (MGT-301)

Courtesy of-Kamrul, Zonayed and Fahad||Department of Management||University of Dhaka

2

2. Solution Tabular Presentation of data

Distribution of steel

Determination of total cost

(450×12.5)+ (350×11.8) + (35×15.6) + (275×12.2) + (70×13.4) + (15×0)

=14594

N.B- if there is any error please inform us, we will try to rectify it.

To be continued...…………

From TO

Supply

Dhaka Sylhet Bogura Dummy

Fenny 12.8

13.6

12.5

0

450

Tangail 11.8

13.5

14.3

0

350

Khulna 15.6

12.2

13.4

0

395

Demand 385 275 520 15

From TO

Supply

Dhaka Sylhet Bogura Dummy

Fenny 12.8

13.6

12.5

0

450

Tangail 11.8

13.5

14.3

0

350

Khulna 15.6

12.2

13.4

0

395

Demand 385 275 520 15

From TO

Supply

Dhaka Sylhet Bogura Dummy

Fenny 12.8

13.6

450 12.5

0

450

Tangail 350 11.8

13.5

14.3

0

350

Khulna 35 15.6

275 12.2

70 13.4

15 0

395

Demand 385 275 520 15 1195

Management Science (MGT-301)

Courtesy of-Kamrul, Zonayed and Fahad||Department of Management||University of Dhaka

3

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