A company is spending Rs.

1,000 on transportation of its units from three plants to

four distribution centres. The supply and demand of units, with unity cost of
transportation are given as: preview not available
Distribution centre

Plant P1 D1 D2 D3 D4 Availability
P2 19 30 50 12 7
P3 70 30 40 60 10
Requirements 40 10 60 20 18
5 8 7 15

What can be the maximum saving by optimal scheduling ?

Solution STEPS 1. Using Vogel’s Approximation Method (VAM), an initial basic
feasible solution f the above problem (as displayed in the following table) is obtained.
Table 1preview not available