TRANSPORTATION

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Transportation
➢ Is a special linear programming technique.

➢ General transportation problem is concerned

with distributing amounts of nay commodity

from any group of sources to any group

dimensions.
 Problem!
Sample
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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. Data below:

COST PER CASE (PHP) WAREHOUSE CAPACITY

(CASES)
FACTORY SEOUL SYDNEY TOKYO

HANOI 8 2 10 300

MANILA 4 7 6 500

BEIJING 5 9 3 400

DEMAND (CASES) 600 400 200 1200

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SEOUL SYDNEY TOKYO SUPPLY

8 2 10
HANOI 300

4 7 6
500
MANILA

5 9 3
BEIJING 400

DEMAND 600 400 200 1200

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OPPORTUNITY COST: (SECOND LOWEST – LOWEST)

A.
HANOI : 8–2=4
MANILA : 6–4=2
BEIJING : 5–3=2
SEOUL : 5–4=1
SYDNEY : 7–2=5
TOKYO : 6–3=3
B.
HANOI : 10 – 8 = 2
MANILA : 6–4=2
BEIJING : 5–3=2
SEOUL : 5–4=1
TOKYO : 6–3=3
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SEOUL SYDNEY TOKYO SUPPLY

8 2 10
HANOI 300
300

4 7 6
500
MANILA
400 100
5 9 3
BEIJING 400
200 200

DEMAND 600 400 200 1200

 Problem!
Sample
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A computer company sells desktop computers to universities in the

University Belt, and ships them from three distribution warehouses:

UNIVERSITY / COLLEGES

DISTRIBUTION CENTER CEU FEU UE SUPPLY

STA. MESA 7 5 9 150

TAFT AVENUE 10 12 10 200

DIVISORIA 6 3 14 50

DEMAND 100 80 220 400

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CEU FEU UE SUPPLY

7 5 9
STA. 150
MESA
10 12 10
200
TAFT
AVE.
6 3 14
DIVISORIA 50

DEMAND 100 80 220 400

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OPPORTUNITY COST: (SECOND LOWEST – LOWEST)

A. C.
STA. MESA: 7–5=2 STA. MESA: 9–7=2
TAFT AVE.: 10 – 10 =0 TAFT AVE.: 10 – 10 =0
DIVISORIA: 6–3=3 CEU: 10 – 7 = 3
CEU: 7–6=1 UE: 10 – 9 = 1
FEU: 5–3=2
UE: 10 – 9 = 1

B.
STA. MESA: 7–5=2
TAFT AVE.: 10 – 10 =0
CEU: 10 – 7 = 3
FEU: 12 – 5 = 7
UE: 10 – 9 = 1
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CEU FEU UE SUPPLY

7 5 9
STA. 150
MESA 100 30 20

10 12 10
200
TAFT
AVE. 200

6 3 14
DIVISORIA 50
50

DEMAND 100 80 220 400

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