Question

Part I. PROBLEM SOLVING

Direction: In each of the items below, provide the details/data required

A concrete company transports concrete from three plants 1, 2, and 3, to three constructions sites A, B, C and D with the following details;

Cost From / To	A	B	C	D	Total Supply
1	19	30	50	10	7
2	70	30	40	60	9
3	45	8	70	20	18
Total Demand	5	8	7	14	34

Requirements;

1. Compute for the total transportation cost of the initial solution using least cost cell method.

2. Obtain the improved solution’s total cost of transportation using Stepping-Stone Method.

Answer 1

Under Least Cost Transportation Method Total Cost is 829

For Stepping Stone Method We should Proceed with Vogels Approximation Method . Vogels Approximation method table is used for Stepping Stone Method Calculation

Under Vogels Approximation Method Total Cost is 779

Finally that cost is reduced to 743 by using Stepping Stone Method