Case:
Consider a problem faced by Foster Generators. This problem involves the shipment of a product from
three plants to four distribution centers. Foster Generators has plants in Cleveland, Ohio; Bedford,
Indiana; and York, Pennsylvania. Production capacities over the next three-month planning period for one
particular type of generator are as follows:
Origin
Plant
Three-Month Production
Capacity (units)
1
Cleveland
5000
2
Bedford
6000
3
York
2500
Total
13,500
The firm distributes its generators through four regional distribution centers located in Boston, Chicago,
St. Louis, and Lexington; the three-month forecast of demand for the distribution centers is as follows:
Transportation cost per unit for the Foster Generators transportation Problem:
Destination
Origin
Boston
Chicago
St Louis
Lexington
Cleveland
3
2
7
6
Bedford
7
5
2
3
York
2
5
4
5
Management would like to determine how much of its production should be shipped from each plant to
each distribution center.
Is this a transportation problem?
Formulate a linear programming model the same?
Find Basic initial basic feasible solution using Vogel’s Approximation Method?
Find the optimum shipment cost.
Destination Distribution
Center Three-Month Demand
Forecast (units)
1
Boston
6000
2
Chicago
4000
3
St. Louis
2000
4
Lexington
1500
Total
13,500
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