A car manufacturer can buy tires from 3 suppliers and their objective is

minimize the total purchase cost. The suppliers have available in thousands of units of 6, 2 and 2
respectively, the manufacturer needs tires in 3 production plants that require
in thousands of units 5, 3, and 2 respectively, cost in hundreds of euros per unit
delivered on each floor is as follows:

Plant 1 Plant 2 Plant 3

Supplier 1 1 8 9
Supplier 2 4 2 5
Supplier 3 2 3 1

SUPPLIER PLANT
1 1

2 2

3 3

Xi,jWhere: i=1…3, j=1…3 and X >= 0

Objective function (minimize)

Z=(X1,1+8X1,2+9X1,3)+(4X2.1+2X2,2+5X2.3)+(2X3.1+3X3.2+X3,3)

Restrictions:

Offer:
X1,1+X1,2+X1,3<=6
X2.1+X2,2+X2.3<=2
X3.1+X3.2+X3,3<=2

Demand:
X1,1+X2.1+X3.1<=5
X1,2+X2,2+X3.2<=3
X1,3+X2,3+X3,3<=2
Northwest corner method:

CAR FACTORY Offer

SUPPLIER
S 1 2 3
1 8 9 6
1
5 1
4 2 5 Saturated lines
2 2
2
2 3 1
3 2
2
Demand 5 3 2

Saturated Columns

Replacing in the Objective Function

Z=(X1,1+X1,2) + (X2,2+(X3.3)
Costo Envió =(1x5)+(8x1)+(2x2)+(1x2)
Costo Envió =(5)+(8)+(4)+(2)
Costo Envió =19 euros

Vogel's Method:

CAR FACTORY
PROVIDER
S 1 2 3
2 1 4
1 1 8 9
6
7
2 4 2 5
2
2
3 2 3 1
2
1 2
5 3 2

SATURATED COLUMN (1)

 CAR FACTORY
SUPPLIER
S 1 2 3
1 1
1 1 8 9
6
7
2 4 2 5 2 Saturated Line (1)

2 2
3 2 3 1
2
1 2
5 3 2

SATURATED COLUMN (1)

CAR FACTORY
SUPPLIER
S 1 2 3
1 5
1 1 8 9
6
7 1
SATURATED LINE (1)
2 4 2 5 2
2
3 2 3 1
2
1 2
5 3 2

COLUMN COLUMN
SATURATED (2) SATURATED (1)

CAR FACTORY
SUPPLIER
S 1 2 3
1 5
1 1 8 9 6 Saturated Line (2)

NO 5 1
2 4 2 5 2 Saturated line (1)

2
3 2 3 1 2 Saturated Line (3)
NO 2
5 3 2

COLUMN COLUMN COLUMN

SATURATED (3) Saturated (2) SATURATED (1)
Replacing in the Objective Function

Z=(X1,1+X1,2)+(X2.2) + (X3.3)
Costo Envió =(1x5)+(8x1)+(2x2)+(1x2)
Costo Envió =(5)+(8)+(4)+(2)
Costo Envió =19 euros

Minimum Cost Method:

CAR FACTORY
SUPPLIER
S 1 2 3

1 1 8 9 6 SATURATED LINE (3)-5

5 1
Saturated row (2)-4
2 4 2 5 2
2
3 2 2 1 2 Saturated Line (1)-3

0 2
5 3 2

COLUMN COLUMN COLUMN

Saturated Saturated Saturated
(2)-2 (3)-6 (1)-1

Replacing in the Objective Function

Z=(X1,1+X1,2) + (X2,2)+(X3.3)
Costo Envió =(1x5)+(8x1)+(2x2)+(1x2)
Costo Envió =(5)+(8)+(4)+(2)
Costo Envió =19 euros
Optimal Method (starting from the northwest corner method):

CAR FACTORY
PROVIDER
S V1 V2 V3

U1 1 8 9
6
5 1
U2 4 2 5
2
2
U3 2 3 1
2
2
5 3 2

U1+V1=1 ; U1+V2=8 ; U2+V2=2 ; U3+V3=1

6 variables – 4 equations = 2 (several that we set equal to zero (0))

U1=0 and U3=0; then:

V1=1, V2=8, V3=1

U2 + 8 = 2 => U2 = 2 - 8 = -6 => U2 = -6

CAR FACTORY
SUPPLIER
S V1 V2 V3
1 8 1
Note: the optimal method it
U1 1 8 9 8
6 we leave it there, because no
0 - 5 1 +
we understand if it is possible
U2 4 9 2 5 -2
2 increase or decrease by one
-6 - 2
U3 cell where there are no values from
2 1 3 -51
2 shipping units.
0 + - 2
5 3 2
Members:

FABIO RUIZ, EDILSON HERRERA, NILSON DE LA OSSA, JAVIER BALLESTEROS, JOSE DURANGO.