NAME:_Junaly P.

Panaga Time of Class: MWF 5:50 – 6:50

1. The AMDK manufactures the central processing unit (CPU) for a line of personal computers.
The CPUs are manufactured in Laguna, Cavite, and Batangas and shipped to warehouses in
Makati, Bulacan, Pampanga, and Pangasinan. For further distribution. The following table
show the number of CPUs available at each plant, the number of CPUs required by each
warehouse and the shipping PROFIT (pesos per unit).

TRANSPORTATION TABLEAU:
FROM\TO Pampanga Makati Bulacan Pangasina Available
n
Canlubang 12 9 10 15
3,000 4,000 7000
Cavite 10 8 12 15
3,000 5,000 8000
Batangas 18 12 15 20
6,000 2,000 8000
Required 6000 6000 6000 5000 23000

Determine the amount that should be shipped from each plant to each warehouse to Maximize
the total shipping profit. Using Vogel Method.
Opportunity cost
COL. ROW COL. ROW COL. ROW
Pampanga = 2 Canlubang = 1 Pampanga = 2 Canlubang = 2 Pampanga = 2 Canlubang = 2
Makati = 1 Cavite = 2 Bulacan = 2 Cavite = 2 Bulacan = 2 Cavite = 3
Bulacan = 2 Batangas = 3 Pangasinan = 0 Batangas = 3 Pangasinan =
0
Pangasinan
=0

IMPROVEMENT INDICES: (Unused square, CP, Net Change)

Unused square Close path Net change
Canlubang Makati = 9 – 10 + 15 - 12 =2
Canlubang Pangasinan = 15 – 15 + 10 - 12 = -2
Cavite Makati = 8 – 10 + 12 – 10 + 15 - 12 =3
Cavite Bulacan = 12 – 10 + 12 – 10 =4
Batangas Pampanga = 18 - 12 + 10 – 15 =1
Batangas Pangasinan = 20 – 15 + 10 – 12 + 10 -15 = -2

ITERATIONS:
FROM\TO Pampanga Makati Bulacan Pangasina Available
n
Canlubang 12 9 10 15
1,500 5,500 7000
Cavite 10 8 12 15
4,500 3,500 8000
Batangas 18 12 15 20
6,000 500 1,500 8000
Required 6000 6000 6000 5000 23000

IMPROVEMENT INDICES: (Unused square, CP, Net Change)

Unused square Close path Net change
Canlubang Makati = 9 – 10 + 15 - 12 =2
Canlubang Pangasinan = 15 – 20 + 15 - 10 =0
Cavite Makati = 8 – 15 + 20 – 12 =1
Cavite Bulacan = 12 – 15 + 20 – 15 =2
Batangas Pampanga = 18 - 12 + 10 – 15 =1
TOTAL PROFIT
Source\Destination Quantity Profit/truck Total PROFIT
Canlubang Pampanga 12 1,500 18,000
Canlubang Bulacan 10 5,500 55,000
Cavite Pampanga 10 4,500 45,000
Cavite Pangasinan 15 3,500 52,500
Batangas Makati 12 6,000 72,000
Batangas Bulacan 15 500 7,500
Batangas Pangasinan 20 1,500 30,000
TOTAL 280,000