1. TRANSPORTATION MODEL
Least Cost Method (LCM)
BY-Swapnil(26),
sagar(02) &
dwarkesh(05)

2. •The problem of finding the minimum-cost
distribution of a given commodity
from a group of supply centers (sources) i=1,…,m
to a group of receiving centers (destinations) j=1,…,n
•Each source has a certain supply (si)
•Each destination has a certain demand (dj)
•The cost of shipping from a source to a destination is
directly proportional to the number of units shipped

11.  Priyanshu enterprise has 3 plants at location
P1,P2 & P3 which supplies 3 warehouses
located at W1,W2,W3 monthly plant
capacities are 20,28,17 units respectively
Monthly warehouse requirments are
21,25,19 units respectively .Unit shipping
cost (in Rs.) are given in the following table
and determine the lowest cost
W1 W2 W3 Supply
P1 7 6 9 20
P2 5 7 3 28
P3 4 5 8 17
Demand 21 25 19 65
CASE STUDY

17. A company is spending Rs. 1000 on transportation of its units from these
plants P1,P2,P3 to four distribution centers D1,D2,D3,D4.
The supply and requirement of units, with unity cost of transportation
are given as: Find the optimum solution of the model.

18. Initial basic feasible solution:
12 * 7 + 70 * 3 + 40 * 7 + 40 * 2 + 10 * 8 + 20 * 8 = Rs. 894.

19. Can be used to resolve distribution and
location decisions
• The Cost of shipping one unit
The destination points and the demand
per period at each
• Rational decisions in urban infrastructure projects
For making rational decisions about
investments in transportation
Application of Transportation Model