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Minimizing Transportation Costs: Stepping Stone Method

The RSV Gravel Supply Company needs to transport gravel from 3 warehouses to 3 road projects to minimize costs. Warehouse 1 can supply 237 truckloads, warehouse 2 can supply 184 truckloads, and warehouse 3 can supply 179 truckloads. The costs for transporting from each warehouse to each project are provided. Using the stepping stone method, the optimal distribution plan that minimizes total transportation costs is determined to be 18 truckloads from warehouse 1 to project A, 12 truckloads from warehouse 2 to project B, with a minimum total cost of 30. A concrete company needs to transport concrete from 3 plants to 3 construction sites to minimize costs. The capacity and requirements of each plant and site are provided. The costs for transporting

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131 views1 page

Minimizing Transportation Costs: Stepping Stone Method

The RSV Gravel Supply Company needs to transport gravel from 3 warehouses to 3 road projects to minimize costs. Warehouse 1 can supply 237 truckloads, warehouse 2 can supply 184 truckloads, and warehouse 3 can supply 179 truckloads. The costs for transporting from each warehouse to each project are provided. Using the stepping stone method, the optimal distribution plan that minimizes total transportation costs is determined to be 18 truckloads from warehouse 1 to project A, 12 truckloads from warehouse 2 to project B, with a minimum total cost of 30. A concrete company needs to transport concrete from 3 plants to 3 construction sites to minimize costs. The capacity and requirements of each plant and site are provided. The costs for transporting

Uploaded by

dean subbie
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Transportation Problem – Stepping Stone

1. The RSV Gravel Supply Company has received a contract to supply gravel to three new road projects
located in three different locations. Project A needs 174 truck loads, project B, 204 truckloads and
project C, 143.
The company has three gravel warehouses located in three different places. Warehouse 1 has
truckloads available, warehouse 2 has 184 and warehouse 3 has 179. The cost of transportation from
the warehouse to the projects are: from warehouse 1 to project A,B,C; P4, P8 and P8 per truckload,
respectively. From ware house 2: P16, P24, P16 and from warehouse 3: P8, P16, and P24, respectively.
The objective is to design a plan of distribution that will minimize the cost of transportation.

2. Fill out the initial table below and use the Stepping Stone Method to find the entries of the
subsequent tables. Write the decision and the minimum cost.

A B
3 2
5
5
2 7
10

2 6
15

18 12

3. A concrete company transports concrete from three plants, 1, 2 and 3, to three construction sites, A,
B and C.

The plants are able to supply the following numbers of tons per week as well as the requirement in the
site per week

Plant Capacity Construction Site Requirement


1 300 A 200
2 200 B 200
3 300 C 300

Cost

To Site A Site B Site C


From
Plant 1 4 3 8
Plant 2 7 5 9
Plant 3 4 5 5

Determine the plan of distribution that will minimize the cost.

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