Assignment: MTH601 (Fall 2020)

Maximum Marks: 15
Due Date: 08-02-2021

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Question: A company has five plants P,Q,R,S, and T from which it supplies to five markets
A,B,C,D, and E. Determine the optimal transportation plan from the following data giving the
plant to market shifting cost, quantities available at each plant and quantities required at each
market. Provide detailed solution by using each of the following methods

1) North West Corner rule (NWC)

2) Least Cost Method (LCM)
3) Unit Cost-Penalty / Vogel’s Approximation Method (VAM)

Also determine total transportation cost in each case. Compare your solutions and determine
the best method.

Origin P Q R S T Supply
A 5 7 8 4 12 60
B 4 4 6 10 5 40
 C 6 7 7 5 9 50
D 3 4 8 12 8 55
E 5 6 3 7 4 60
Demand 70 45 40 48 62