ABC Warehouse is a fast moving consumer goods (FMCG) distribution company that is headquartered in Windhoek. As part of their normal operations, they have to schedule transportation of goods. The following costs, supply, and demand have been given for one of their normal operations: From To Okahandja Otjiwarongo Otavi Tsumeb Supply Warehouse A N$500 N$750 N$300 N$450 12 Warehouse B N$650 N$800 N$400 N$600 17 Warehouse C N$400 N$700 N$500 N$550 11 Demand 10 10 10 10 Requirement Mark Subtotal Total 1.1 Is this a balanced transportation problem? Why? 2 2 1.2 Find the initial solution using the northwest corner method and Vogels approximation model (VAM). Compute the total cost for each. 20 22 1.3 Using the VAM initial solution, find the optimal solution using the modified distribution method (MODI). 10 32

Question 1 (32 marks) ABC Warehouse is a fast moving consumer goods (FMCG) distribution company that is headquartered in Windhoek. As part of their normal operations, they have to schedule transportation of goods. The following costs, supply, and demand have been given for one of their normal operations: From Warehouse A Warehouse B Warehouse C Demand Okahandja N$500 N$650 N$400 10 Otjiwarongo N$750 N$800 N$700 10 To Otavi N$300 N$400 N$500 10 Tsumeb N$450 N$600 N$550 10 Supply 12 17 11 Requirement Mark Sub- Total total 2 2 20 22 1.1 Is this a balanced transportation problem? Why? Find the initial solution using the northwest corner method and 1.2 Vogel's approximation model (VAM). Compute the total cost for each. 1.3 Using the VAM initial solution, find the optimal solution using the modified distribution method (MODI). Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these. Total 10 32 32