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The document outlines unit transportation costs from suppliers to customers, detailing average unit costs, quantities, and total costs for various supplier-customer pairs. It also presents variances in random unit costs and compares supply capacity against customer demand, indicating a balanced total of 200 units. Additionally, it mentions a reduced probability of exceeding a permissible threshold with the proposed method.

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Febri Rukmana
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6 views3 pages

Paper Example

The document outlines unit transportation costs from suppliers to customers, detailing average unit costs, quantities, and total costs for various supplier-customer pairs. It also presents variances in random unit costs and compares supply capacity against customer demand, indicating a balanced total of 200 units. Additionally, it mentions a reduced probability of exceeding a permissible threshold with the proposed method.

Uploaded by

Febri Rukmana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Unit transportation cost

Supplier to Customer Average Unit cost Quantity Total cost


S1 - C1 $ 11.50 X11 0 $ -
S1 - C2 $ 10.00 X12 120 $ 1,200.00
S2 - C1 $ 10.50 X21 60 $ 630.00
S2 - C2 $ 11.00 X22 20 $ 220.00
Total 200 $ 2,050.00

Supplier to Customer Variances of random Unit cost Quantity Total cost


S1 - C1 $ 8.00 X11 50 $ 575.00
S1 - C2 $ 10.00 X12 70 $ 700.00
S2 - C1 $ 12.00 X21 10 $ 105.00
S2 - C2 $ 6.00 X22 70 $ 770.00
Total 200 $ 2,150.00

Supply capacity
S1 120
S2 80
Total 200

Customer demand
C1 60
C2 140
Total 200

X11 + X12 120


X21 + X22 80
X11 + X21 60
X21 + X22 140
The probability of exceeding the permissible threshold in this case is two times less than the previous one
The apparent advantage of the proposed method, naturally, will be the greater
mes less than the previous one
ill be the greater

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