1. APPLICHEM – THE TRANSPORTATION
PROBLEM
Amanda Myra (0906557083)
Awal Maulana (0906636371)
Dicky Hadinata (0906636434)
Ingrid Gusmery (0906636485)
Izmi Tania (0906553186)

2. KNOWN DATA (BASE COST)
Plant Production Cost and Capacity
Production Cost
Plant Plant Capacity
(per 1000 lbs)
Mexico City 95.01 22
Windsor.Ontario 97.35 3.7
Caracas 116.34 4.5
Frankfurt 76.69 47
Gary 102.93 18.5
Osaka 153.8 5
Plant / Country Mexico Canada Venezuela Europe United Stae Japan Plant Capacity
Mexico City 0 11.4 7 11 11 14 22
Windsor.Ontario 11 0 9 11.5 6 13 3.7
Caracas 7 10 0 13 10.4 14.3 4.5
Frankfurt 10 11.5 12.5 0 11.2 13.3 47
Gary 10 6 11 10 0 12.5 18.5
Osaka 14 13 16 14.2 13 0 5
Total Demand 3 2.6 16 20 26.4 11.9
Import Duty 0.0% 0.0% 50.0% 9.5% 4.5% 6.0%

3. COMBINED COST
Combines cost is resulted by summing the
production cost, shipping cost, & import duty
Plant / Country Mexico Canada Venezuela Europe United Stae Japan Plant Capacity
Mexico City 95.01 106.41 153.015 116.081 110.78045 115.5506 2200
Windsor.Ontario 108.35 97.35 159.525 119.1908 108.00075 116.971 370
Caracas 123.34 126.34 174.51 141.6273 132.4433 138.4784 450
Frankfurt 86.69 88.19 133.785 83.97555 91.84505 95.3894 4700
Gary 112.93 108.93 170.895 123.6584 107.56185 122.3558 1850
Osaka 167.8 166.8 254.7 183.96 174.306 163.028 500
Total Demand 300 260 1600 2000 2640 1190
Import Duty 0.0% 0.0% 50.0% 9.5% 4.5% 6.0%

4. OLD SHIPPING METHOD
Plant / Country Mexico Canada Venezuela Europe United Stae Japan
Mexico City 300 630 790
Windsor.Ontario 260
Caracas 410
Frankfurt 560 2000 1240
Gary 1400
Osaka 400
TOTAL COST = 881,912.7

5. OPTIMIZED SHIPPING METHOD
Candidate
Mexico Canada Venezuela Europe United States Japan Total
Solution
Shipped
Mexico City 3.0 0.0 0.0 0.0 3.2 0.0 6.2
Windsor Ontario 0.0 2.6 0.0 0.0 1.1 0.0 3.7
Caracas, Venezuela 0.0 0.0 4.5 0.0 0.0 0.0 4.5
Frankfort, Germany 0.0 0.0 11.5 20.0 3.6 11.9 47.0
Gary, Indiana 0.0 0.0 0.0 0.0 18.5 0.0 18.5
Osaka, Japan 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Requirements 3.0 2.6 16.0 20.0 26.4 11.9
Cost Mexico Canada Venezuela Europe United States Japan
Calculations
Mexico City $285.03 $0.00 $0.00 $0.00 $354.50 $0.00
Windsor, Ontario 0.00 253.11 0.00 0.00 118.80 0.00
Caracas, Venezuela 0.00 0.00 523.53 0.00 0.00 0.00
Frankfort, Germany 0.00 0.00 1,538.53 1,533.80 330.64 1,135.13
Gary, Indiana 0.00 0.00 0.00 0.00 1,904.21 0.00
Osaka, Japan 0.00 0.00 0.00 0.00 0.00 0.00
$797,728

6. REKOMENDASI
1. Karena tidak ada pengiriman barang dari
Osaka, maka sebaiknya pabrik tersebut
dinonaktifkan
2. Menggunakan skema rute transportasi yang
baru (optimum) untuk mengurangi biaya
pengiriman sebesar + 90,000
3. Kapasitas produksi di Mexico City dikurangi
untuk meminimumkan biaya perawatan dan
meningkatkan utilisasi mesin