What are Transportation Problems | Northwest Corner Rule and Stepping Stone Method
Channel: MathHub TV
Date: 2020-09-22

What are transportation problems?  Transportation problems are concerned with determining the optimal strategy for distributing a commodity from a group of supply centers, called sources, to various receiving centers, called destinations, in such a way to minimize total distribution costs.  In this lesson, I will show you how to solve transportation problems using the Northwest Corner Rule and Stepping Stone Method.

We will be solving the following problems:

A company has two plants, P1 and P2  producing a certain product that is to be shipped to three distribution centers, C1,  C2, and C3. Plants P1 and P2 can supply  110,000 units and 130,000 units respectively. On the other hand, the distribution centers C1, C2, and C3 need  80,000, 70,000, and 90,000 units respectively. The cost of shipping from the suppliers P1 and P2 to the customers  C1, C2, and C3 are given in the table.  How many units should be shipped from each plant to each distribution center, so as to minimize cost?

The RSV Gravel Supply Company has received a contract to supply gravel to three new road projects located at different locations. Project  A needs 174 truckloads, project B, 204 truckloads, and project C, 143.  The company has three gravel warehouses located in three different places. Warehouse 1 has 158 truckloads available, warehouse 2 has  184, and warehouse 3 has 179. The costs of transportation from the warehouse to the projects are: from warehouse 1 to projects A, B, and  C; P4, P8, and P8 per truckload, respectively. From warehouse 2,  P16, P24, and P16 and from warehouse 3: P8, P16 andP24,  respectively. The objective is to design a plan of distribution that will minimize the cost of transportation.

⏲️ Timestamps ⏲️
Introduction (0:00)
What are transportation problems (0:16)
How to set up opportunity cost tables (2:09)
Northwest Corner Rule (4:02)
Stepping Stone Method (11:07)

#mathhubtv #transportationproblems

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