e. Moonlight Transport company ships truckloads of grain from three warehouses to four listribution centers. The supply (in truck loads), the demand (in truckloads), and the unit ransportation costs per truckload on the different routes are summarized in table below. Distribution centres Warehouses Distribution Distribution Distribution Distribution Supply (in truck loads) centre 1 centre 2 centre 3 centre 4 Warehouse 1 $3 $1 $7 $4 300 Warehouse 2 $2 $6 $5 9 400 Warehouse 3 $8 $3 $3 $2 500 Demand (in 250 350 400 200 1200 truck loads)
e. Moonlight Transport company ships truckloads of grain from three warehouses to four listribution centers. The supply (in truck loads), the demand (in truckloads), and the unit ransportation costs per truckload on the different routes are summarized in table below. Distribution centres Warehouses Distribution Distribution Distribution Distribution Supply (in truck loads) centre 1 centre 2 centre 3 centre 4 Warehouse 1 $3 $1 $7 $4 300 Warehouse 2 $2 $6 $5 9 400 Warehouse 3 $8 $3 $3 $2 500 Demand (in 250 350 400 200 1200 truck loads)
Chapter14: Marketing Channels And Supply Chain Management
Section: Chapter Questions
Problem 15DRQ
Related questions
Question
Transcribed Image Text:Now, Moonlight Transport Company wants to ship all the truckloads at a minimum cost and
wants to fulfill the demand of all the distribution centres, Based on the information given above,
answer the following questions. Also, clearly write down each of the steps.
a) Using the Vogel Approximation Method (VAM), determine the optimal allocation of the
truckloads of the Moonlight Transport Company between different warehouses and distribution
çentres that will minimize the cost and fulfill the demand of all the distribution çentres. (Use
manual process)
b) What is the minimum cost incurred by Moonlight Transport Company as per VAM method?
Transcribed Image Text:2. Moonlight Transport company ships truckloads of grain from three warehouses to four
distribution centers. The supply (in truck loads), the demand (in truckloads), and the unit
transportation costs per truckload on the different routes are summarized in table below.
Distribution centres
Supply (in
truck loads)
Warehouses
Distribution
Distribution
Distribution
Distribution
centre 1
centre 2
centre 3
centre 4
Warehouse 1
$3
$1
$7
$4
300
Warehouse 2
$2
$6
$5
9
400
Warehouse 3
S8
$3
$3
$2
500
Demand (in
250
350
400
200
1200
truck loads)
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