QQ.8. M/s XYZ Enterprise has three factories located at D, E and F which supplies three warehouses located at A, B and C. Monthly factory capacities are given in below table 1. Warehouse Factory A B C Supply D 6 2 8 30 E 7 5 2 60 F 4 3 6 550 Requirement 65 35 45. The penalty costs for not satisfying demand at warehouse A, B and C are Rs. 7, Rs. 3 and Rs. 4 per unit respectively. Determine the IBFs for distribution for M/s India Enterprise using transportation technique.
Key Points:
- Transportation problems balance supply and demand to minimize distribution costs.
- Unbalanced problems (supply ≠ demand) require a dummy row/column.
- Excess supply (640 units) over demand (145 units) necessitates a 'Dummy Warehouse' for 495 units.
- Costs to the Dummy Warehouse are zero, representing unused capacity.
Answer: The problem presented for M/s XYZ Enterprise is a classic transportation problem aimed at determining the Initial Basic Feasible Solution (IBFS) for distributing goods from three factories (D, E, F) to three warehouses (A, B, C). First, we must assess the balance between total supply and total demand. The total monthly factory capacity (supply) is 30 (D) + 60 (E) + 550 (F) = 640 units. The total warehouse requirement (demand) is 65 (A) + 35 (B) + 45 (C) = 145 units. Since total supply (640 unit...