ABC Steel Company has three processing plants with daily supply capacities of 450, 350, and 395 tons. It has three warehouses in Dhaka, Sylhet, and Bogura needing 385, 275, and 520 tons daily. Shipping costs from each plant to each warehouse are provided. The problem is to plan shipments at minimum cost. The solution presents the data in a table and calculates the total distribution cost as 14594.

1. Management Science (MGT-301)
Courtesy of-Kamrul, Zonayed and Fahad||Department of Management||University of Dhaka
1
Distribution Models
1. Class Problem Date 15-04-15
ABC Steel Company has 3 processing plants, one at Fenny with supply capacity of 450 tons a day,
another at Tangail with supply capacity of 350 tons a day and the third and last one at Khulna with
supply capacity of 395 per day.
It has three warehouses is in Dhaka, Sylhet, and Bogura. The warehouses need, if possible, 385,275 and
520 tons of steel each day respectively to meet their distribution demand.
The shipping cost form each plant to each warehouses are given below
From To Cost
Fenny Dhaka 12.8
Fenny Sylhet 13.6
Fenny Bogura 12.5
Tangail Dhaka 11.8
Tangail Sylhet 13.5
Tangail Bogura 14.3
Khulna Dhaka 15.6
Khulna Sylhet 12.2
Khulna Bogura 13.4
a. ABC’s problem is to plan the shipment at the least possible cost, solve the transportation
problem
b. Find the total cost of distribution

2. Management Science (MGT-301)
Courtesy of-Kamrul, Zonayed and Fahad||Department of Management||University of Dhaka
2
2. Solution
Tabular Presentation of data
Distribution of steel
Determination of total cost
(450×12.5)+ (350×11.8) + (35×15.6) + (275×12.2) + (70×13.4) + (15×0)
=14594
N.B- if there is any error please inform us, we will try to rectify it.
To be continued...…………
From
TO
Supply
Dhaka Sylhet Bogura Dummy
Fenny
12.8 13.6 12.5 0
450
Tangail
11.8 13.5 14.3 0
350
Khulna
15.6 12.2 13.4 0
395
Demand 385 275 520 15
From
TO
Supply
Dhaka Sylhet Bogura Dummy
Fenny
12.8 13.6 12.5 0
450
Tangail
11.8 13.5 14.3 0
350
Khulna
15.6 12.2 13.4 0
395
Demand 385 275 520 15
From
TO
Supply
Dhaka Sylhet Bogura Dummy
Fenny
12.8 13.6
450
12.5 0
450
Tangail 350
11.8 13.5 14.3 0
350
Khulna 35
15.6
275
12.2
70
13.4
15
0
395
Demand 385 275 520 15 1195

3. Management Science (MGT-301)
Courtesy of-Kamrul, Zonayed and Fahad||Department of Management||University of Dhaka
3
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