Solve the transportation problem below using the Northwest Corner method and the

Question

Solve the transportation problem below using the Northwest Corner method and the Intuitive Lowest-Cost method. Use the result from the Northwest Comer method as the starting point, and solve for the optimal solution using the Stepping-Stone method. Show all steps and all calculations when doing the Stepping-Stone method. Plants Kansas City Omaha Des Moines DestinationDemand Chicago 30 St.Louis65 Cincinnati 40 Supply 35 50 50 135 tons Total Total 135 tons Transport cost from Plants to Destinations (S/ton) St. Louis Cincinnati Chicago $4 Plants Kansas City Omaha Des Moines

Explanation / Answer

Stepping stone method of transport solution actually looks for matching costs with demand and supply and uses steps to knock off instead of an LP/ IP problem which attempts to arrive at an optimatal solution by allocating dynamically to reduce overall costs.

Steps:

Note: Stepping stone treats the problem step by step. It does not attempt an optimal solution in one go. Hence, the stepping stone method may not be the most cost effective.

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