A large manufacturing company mills steel in three locations, Kisumu (1), Mombasa (2), and Machakos

(3) with weekly production quantities as in Table 1 below

Table 1: Supply Quantities

Milling Location	Weekly production
1	150
2	210
3	320

The three milling locations supply steel to four towns Nairobi (1), Kisii (2), Nyeri (3), and Nakuru (4) where manufacturing plants have the following demand levels (Table 2)

Table 2: Demand quantities

	Demand Points
Demanded	130	70	180	240

Shipping costs per ton of steel from each milling location to each demand point are as follows (Table 3)

Table 3: Per unit Shipping cost

	Demand Point
Milling Location	1	2	3	4
1	14	9	16	18
2	11	8	7	16
3	16	12	10	22

1. Formulate the firm’s Transportation problem as a Linear Programming program
2. Model the firm’s Transportation problem as a Transportation Table, Is the Problem balanced and why?
3. Given the firm’s desired objective is cost minimization, find using the model in (b) above the initial basic feasible solution and hence the transportation schedule using the following methods :
   1. North West Corner Rule (NWCR)
   2. Vogel Approximation Method (VAM)

Answer rating: 100% (QA)

A Formulate the firms Transportation problem as a Linear Programming program Minimize Z 14x11 9x12 1... View the full answer