PROBLEMS OF TRANSPORTATION MODEL OF MANUFACTURED GOODS TO CUSTOMER CASE STUDY :( GUINESS NIGERIA LIMITED)
CHAPTER ONE INTRODUCTION 1.1 A brief Review of the Transportation Problem Business and Industries are practically faced with both economic optimization such as cost minimization of non-economic items that are vital to the existence of their firms. The transportation models or problems are primarily concerned with the optimal (best possible) way in which a product produced at different factories or plants (called supply origins) can be transported to a number of warehouses or customers (called demand destinations). The objective in a transportation problem is to fully satisfy the destination requirements within the operating production capacity constraints at the minimum possible cost. Whenever there is a physical movement of goods from the point of manufacturer to the final consumers through a variety of channels of distribution (wholesalers, retailers, distributors etc.), there is a need to minimize the cost of transportation so as to increase profit on sales. (i) The transportation problem is a special class of linear programming problem, which deals with shipping commodities from source to destinations. The objective of the transportation problem is to determine the shipping schedule that minimize that total shipping cost while satisfying supply and demand limits
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