BUS606: Operations and Supply Chain Management

This study employ a transportation model to find the minimum cost of transporting manufactured goods from factories to warehouses to (distributors). CCNN transportation data as well as OBU cement transportation data collected from BUA group of Company were utilized. The data was modelled as a Linear Programming model of transportation type and represented as transportation tableau which was solved with R Programming and TORA software version 1.0.0 to generate its initial basic feasible solution and optimal solution. From the results of the analysis, it is shown that all three methods of initial basic feasible solution (North-West corner method, Least Cost (minimum) method and Vogel Approximation method) gave varying answers. The North-West corner method gave transportation cost of ₦2,336,000, Least Cost (minimum) method gave transportation cost of ₦4,160,900 and Vogel Approximation method gave ₦2,331,800 as its transportation cost. The above result shows that Vogel Approximation method is the most efficient of all the methods because it has the least transportation cost. Another reason why the Vogel Approximation method is the best method is that, it has closest figure to the optimal solution realized after optimization. After optimization, all three methods (North-West corner method, Least Cost (minimum) method and Vogel Approximation method) gave the same result of ₦1,972,000. This shows that, all the three methods (North-West corner method, Least Cost (minimum) method and Vogel Approximation method) are optimal.

Keywords: North-West corner method, Least Cost (minimum) method and Vogel Approximation method)

Source: M. L. Aliyu, U. Usman, Z. Babayaro, and M. K. Aminu, http://article.sapub.org/10.5923.j.ajor.20190901.01.html
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