A. Tri-County Utilities Inc.

Destination
Source Hamilton Butler Clermont Supply

Southern Gas 10 20 15 500

Northwest Gas 12 15 18 400

900
Demand 400 200 300 900

B. Linear Programming Model for Tri-County Utilities Inc.

Initial Basic Feasible Solution
1. Nort-West Corner Rule Method
Destination
Source Hamilton Butler Clermont Supply
400 100 100
Southern Gas 10 20 15 500
100 300 300
Northwest Gas 12 15 18 400
0 100 0 900
Demand 400 200 300 900
Transportation Cost:
= (400 x 10) + (100 x 20) + (100 x 15) + (300 x 18)
₱12,900.00

2. Least Cost Method

Determines the least value of all transportation cost.
If there is a tie, select arbitrarily based on your own preference.
Destination
Source Hamilton Butler Clermont Supply
400 100 100
Southern Gas 10 20 15 500
200 200 200
Northwest Gas 12 15 18 400
0 0 200 900
Demand 400 200 300 900
Transportation Cost:
= (400 x 10) + (100 x 15) + (200 x 15) + (200 x 18)
₱12,100.00
 3. Vogel’s Approximation method
Finds the feasible solution by considering the penalty cost of not using the cheapest rate.

Row Difference
Destination
Source HamiltonButler Clermont Supply
400 100 100
Southern Gas 10 20 15 500 (15-10) 5 (20-15) 5 -
100 300 0
Northwest Gas 12 15 18 400 (15-12) 3 (18-15) 3 (18-15) 3
0 100 0 900
Demand 400 200 300 900

Column
Difference (12-10) 2 (20-15) 5 (18-15) 3
- (20-15) 5 (18-15) 3
- - 18

Transportation Cost:
= (400 x 10) + (100 x 20) + (100 x 15) + (300 x 18)
₱12,900.00

C. NWCR Method and Vogel’s Approximation Method’s total distribution cost amounted to 12,900 each
while Least Cost Method only has a cost of 12,100.00. For Tri-County Utilities, Hamilton County is to be
supplied by Southern Gas of 400units; Butler County to be supplied by Northwest Gas of 200units; and
Clermont County is to be supplied by Southern Gas by 100units and 200units from Northwest Gas.

D. Butler County increased demand by 100 units resulting to an unbalanced demand and supply
1. North-West Corner Rule Method

Destination
Source Hamilton Butler Clermont Supply
400 100 100
Southern Gas 10 20 15 500
200 200 200
Northwest Gas 12 15 18 400
100
Dummy 0 0 0 100
0 200 100 1000
Demand 400 300 300 1000

Transportation Cost
=(400 x 10) + (100 x 20) + (200 x 15) + (200 x 18) + (100 x 0)
₱12,600.00
 2. Least Cost Method
Destination
Source HamiltonButler Clermont Supply
300 200 200
Southern Gas 10 20 15 500
300 100 100
Northwest Gas 12 15 18 400
100 0
Dummy 0 0 0 100
300 0 100 1000
Demand 400 300 300 1000

Transportation Cost
=(300 x 10) + (200 x 15) + (300 x 15) + (100 x 18) + (100 x 0)
₱12,300.00

3. Vogel’s Approximation method

Row Difference
Destination
Source Hamilton Butler Clermont Supply
400 100 100
Southern Gas 10 20 15 500 (15-10) 5 (15-10) 5 (20-15) 5
300 100 100
Northwest Gas 12 15 18 400 (15-12) 3 (15-12) 3 (15-12) 3
100 0
Dummy 0 0 0 100 0- -
0 0 200 1000
Demand 400 300 300 1000

Column
Difference (10-0) 10 (15-0) 15 (15-0) 15
(12-10) 2 (20-15) 5 (18-15) 3
- (20-15) 5 (18-15) 3

Transportation Cost
=(400 x 10) + (100 x 15) + (300 x 15) + (100 x 18) + (100 x 0)
₱11,800.00

Using Vogel’s Approximation Method as having the least distribution cost, the whole 300units is to be supplied
from Northwest Gas.