WE ARE…..

Faysal Ahmed (ID:191-12-687)

Ankhi Moni Lovely (ID:191-12-692)
MD. Al Imran Khan (ID:192-12-704)
Md Zaynul Abedin (ID: 191-14-2878)
Resvi Ahmed (ID:)
 Finding the Optimal Cost for
Transportation Model of Samsung
Samsung has three distribution point located around Dhaka city with distribution capacity 60, 70 and
40-unit refrigerators15, 15, 45, and 55unit refrigerators respectively. The transportation costs
(TAKA) are given below. Each day the firm must furnish its four showrooms in Dhaka city S1, S2,
S3, & S4 with at least

Show Room
Company S1 S2 S3 S4 Supply
F1 200 800 800 800 60
F2 400 600 900 500 70
F3 500 700 700 300 40
Demand 28 15 55 35

The economic problem is to distribute the available product to different showrooms in such a way so
that the total transportation cost is minimum?
a) Use VAM method to find an initial feasible solution of this problem
b) Find the optimal solution of this problem. The solution that minimizes the transportation cost.
SOLUTION……….
  S1 S2 S3 S4 Supply

F1 200 800 800 800 60

F2 400 600 900 500 70

F3 500 700 700 300 40

Demand 28 15 55 35  
TABLE: 01

S1 S2 S3 S4 Dummy Supply
F1 200 800 800 800 0 60 200
F2 400 600 900 500 0 70 400
(37) (33)

F3 500 700 700 300 0 40 300

Demand 28 15 55 35 37
(0)
200 100 100 200 0
TABLE: 02,3

S1 S2 S3 S4 Supply
F1 200 800 800 800 60 600
(28) (32)
F2 400 600 900 500 33 100
F3 500 700 700 300 40 200
Demand 28 15 55 35
(0)
200 100 100 200

S1 S2 S3 S4 Supply
F1 200 800 800 800 60 600
(28) (32)
F2 400 600 900 500 33 100
F3 500 700 700 300 40 200
Demand 28 15 55 35
(0)
200 100 100 200
TABLE: 04,05
  S2 S3 Supply  

F1 800 800 32 0

F2 600 900 33 300

(15) (18)

F3 700 700 05 0

Demand 15 55    

  100 100    

  S3 Supply  

F1 800 32 0
(32) (0)

F2 900 18 0
(18) (0)

F3 700 05 0
(05) (0)

Demand 55    
(50)
(18)
Total Cost = (0*37) + (200*28) + (300*35) + (600*1 5) + (800*32) + (900*18) + (700*5) =
70400.00
Here, the number of allocated cells = 7 is equal to m + n - 1 = 5 + 3 - 1 = 7
The situation is feasible as it satisfy M + N - 1
 OPTIMALITY TEST = U-V METHOD

Table: 1
  V1 V2 V3 V4 V5
U1 200   800    
U2   600 900   0
U3     700 300  

Let,
V1 = 0 U1 = 200
V2 = 300 U2 = 300
V3 = 600 U3 = 100
V4 = 200
V5 = -300

So,
U1+V2 = 400
U1+V4 = 400
U1+V5 = -100
U2+V1 = 300
U2+V4 = 500
U3+V1 = 100
U3+V2 = 400
U3+V5 = -200
TABLE: 2,3

  V1 V2 V3 V4 V5
U1 - 400 - 400 -100
U2 300 - - 500 -
U3 100 400 - - -200

  V1 V2 V3 V4 V5
U1 - 400 - 400 100
U2 100 - - 0 -
U3 400 300 - - 200

Since the cell’s evaluation matrix consist all at positive Value. So the
total cost 70400 is optimal.
FINDINGS

 Sometimes vehicles are not adequate to carry

all materials that’s why we consume more
time.
 Long distance between warehouse and
outlets it increases cost.
 Samsung Company has lack of floor space in
outlets.
 Unnecessary movement of materials from one
location to another location that’s why it
increases cost.
 Heavy traffic increases cost of transportation.
RECOMMENDATIONS

 Need to ensure adequate vehicles to carry all

material efficiently.
 Should reduce distance between distribution
point and outlets so that it reduces cost.
 Company should increase floor space.
 Company should necessary movement one
location to another.