Page 105 - DCOM303_DMGT504_OPERATION_RESEARCH

Operations Research

Notes
Figure 5.2: Network Model of Transportation Problem
Factory Warehouse
Source Destination
6000
5 5000
Chennai Bangalore
1 6 1

9
7
7
Supply Coimbatore Hyderabad Demand
2
5000 8 2 4000
2
4

Cochin
6 3 3 2000
5

4000 Madurai
3
3
Goa
Transportation cost 4 4000

The management of GM Textiles would like to determine the number of units to be shipped
from each textile unit to satisfy the demand of each wholesale distributor. The supply, demand
and transportation cost are as follows:

Table 5.2 (a): Production Capacities

Supply Textile Unit Weekly Production (Units)
1 Chennai 6000
2 Coimbatore 5000
3 Madurai 4000

Table 5.2 (b): Demand Requirements
Destination Wholesale Distributor Weekly Demand (Units)
1 Bangalore 5000
2 Hyderabad 4000
3 Cochin 2000
4 Goa 4000

100 LOVELY PROFESSIONAL UNIVERSITY