Download - Distribution models class problem
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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