Question: (a) Explain the purpose of transportation method used to optimize resource allocation. (b) A company has three (3) production plant identified as K, L,

(a) Explain the purpose of transportation method used to optimize resource allocation.

(a) Explain the purpose of transportation method used to optimize resource allocation. (b) A company has three (3) production plant identified as K, L, and M, and supply a certain product to four (4) warehouses identified as P, Q, R and S. The table below gives the transportation cost from each production plant to each warehouse. Also given in the table are supply of each plant and the demand at each warehouse. Q R S Supply From K 8. 6. 12 9. 400 L 7 11 10 14 500 M 13 8. 8 7 600 Demand 325 425 475 275 (i) Determine the initial feasible supply schedule using Least cost method or North-west corner method. (ii) Check your schedule for optimality and improve the schedule for minimum total cost.

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