1.

Allan is the vice president for Asia Pacific Region of UNILEVER’s Clear for Men
Shampoo. He supervises three factories (Hanoi, Manila, and Beijing) that supply three
warehouses (Seoul, Sydney, and Tokyo) in the region. Hanoi can produce 300 cases,
Manila can produce 500 cases, and Beijing can produce up to 100 cases per week.
Meanwhile, Seoul’s demand is 300 cases, Sydney’s demand is 400 cases, and Tokyo’s
demand is 200 cases per week. The shipping cost per case from Hanoi to Seoul is Php
400, to Sidney is Php 100, and to Tokyo is Php 500. The shipping cost per case from
Manila to Seoul is Php 200, to Sidney is Php 350, and to Tokyo is Php 300. The
shipping cost per case from Beijing to Seoul is Php 250, to Sidney is Php 450, and to
Tokyo is Php 150.

Find the initial solution using:

FACTORIES SUPPLY
Hanoi 300
Manila 500
Beijing 100

WAREHOUSE DEMAND
Seoul 300
Sydney 400
Tokyo 200

WAREHOUSE
Seoul Sydney Tokyo SUPPLY
FACTORIES

Hanoi 400 100 50 300

Manila 200 350 300 500

Beijing 250 450 150 100

DEMAND 300 400 200 900

A. NORTHWEST CORNER METHOD

WAREHOUSE
Seoul Sydney Tokyo SUPPLY
FACTORIES

Hanoi 300 300

400 100 50
Manila 400 100 500
200 350 30
Beijing 100 100
250 450 150
DEMAND 300 400 200 900

Ct = (300×400)+(400×350)+(100×30)+(100×150)
Ct = ₱278,000.00

B. BEST CELL APPROACH

WAREHOUSE
 Seoul Sydney Tokyo SUPPLY
Hanoi 300 300
400 100 50
Manila 300 200 500
200 350 30
Beijing 100 100
250 450 150
DEMAND 300 400 200 900

Ct = (300×200)+(300×100)+(100×450)+(200×30)
Ct = ₱141,000.00