Optimization of total transportation cost

Abstract

In this research work, the study used transportation problem techniques to determine minimum cost of transportation of Gimbiya Furniture Factory using online software, Modified Distribution Method (MODI). The observation made was that if Gimbiya furniture factory, Birnin Kebbi could apply this model to their transportation schedule, it will help to minimize transportation cost at the factory to ₦1,125,000.00 as obtained from North west corner method, since it was the least among the two methods, North west corner method and Least corner method. This transportation model will
be useful for making strategic decision by the logistic managers of Gimbiya furniture factory, in making optimum allocation of the production from the company in Kebbi to various customers (key distributions) at a minimum transportation cost.

Keywords: North West corner, Least corner, Transportation problem, minimum transportation.