ACTIVITY 5 IN TRANSPORTATION MODEL

Name: Date:
Course: Professor:

The Epsilon Computers company sells desktop computers to universities in the

university belt, and ship them from three distribution warehouses. The firm is able to
supply the following numbers of desktop computers to the universities by the beginning
of the academic year.

Distribution Warehouses (Sources) Supply

Sta. Mesa 150

Taft Avenue 200

Divisoria 50

Total 400

Universities have ordered desktop computers that must be delivered and installed by
the beginning of the academic year.

University/College Demand (desktop

computers)

CEU 100

FEU 80

UE 220

Total 400

The shipping cost per desktop computer from each distributor to each university are as
follows:

From A (CEU) B (FEU) C (UE)

 Sta.Mesa 7 5 9

Taft Avenue 10 12 10

Divisoria 6 3 14

With cost minimization as a criterion, Epsilon Company wants to determine (1) how
many desktop computers should be shipped from each warehouse to each university?
and (2) how much would be the total cost of transportation? following:
a. the Northwest Corner Rule (NCR)
b. and Minimum Cost Method (MCM)