OPTIMIZATION OF TOTAL TRANSPORTATION COST

KAMBA ADAMU ISAH, KARDI SULEIMAN MANSUR, GORIN DIKKO YUNUSA KABIR

Abstract


In this research work, the study used transportation problem techniques to determine minimum cost of transportation
of Gimbiya Furniture Factory using online software, Modified Distribution Method (MODI). The observation made was
that if Gimbiya furniture factory, Birnin Kebbi could apply this model to their transportation schedule, it will help to
minimize transportation cost at the factory to ₦1,125,000.00 as obtained from North west corner method, since it was
the least among the two methods, North west corner method and Least corner method. This transportation model will
be useful for making strategic decision by the logistic managers of Gimbiya furniture factory, in making optimum
allocation of the production from the company in Kebbi to various customers (key distributions) at a minimum
transportation cost.


Keywords


North West corner, Least corner, Transportation problem, minimum transportation.

Full Text:

PDF

Refbacks

  • There are currently no refbacks.