The Notsognu Corporation has four major suppliers that supply each of their three assembly plants. The supply and demands for each site are shown below.
Supply Plant Supply A 350 B 250 C 200 D 150
Demands Plant Demands 1 400 2 250 3 300
The per unit transportation costs from the suppliers to the assembly plants are shown below. A B C D 1 5 9 7 6 2 15 9 6 14 3 21 12 14 16
1. Set up the initial table to solve this problem using the Transportation Method.
2. What is the total transportation cost for this initial solution.
3. Identify an improved solution, i.e., one with a lower total cost. How much money was saved?