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Two godowns A and B have grain capacity of 100 quintals and 50 quintals respectively. They supply to 3 ration shops, D, E and F whose requirements are 60, 50 and 40 quintals respectively. The cost of transportation per quintal from the godowns to the shops are given in the following table:

How should the supplies be transported in order that the transportation cost is minimum? What is the minimum cost?

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Let godown A supply x and y quintals of grain to the shops D and E respectively. Then, (100 − x − y) will be supplied to shop F.

The requirement at shop D is 60 quintals since x quintals are transported from godown
A. Therefore, the remaining (60 −x) quintals will be transported from godown B. Similarly, (50 − y) quintals and 40 − (100 − x − y) = (x + y − 60) quintals will be transported from godown B to shop E and F respectively. The given problem can be represented diagrammatically as follows.

Total transportation cost z is given by,

The given problem can be formulated as Minimize z = 2.5x + 1.5y + 410 … (1) subject to the constraints,

The feasible region determined by the system of constraints is as follows.

The corner points are A (60, 0), B (60, 40), C (50, 50), and D (10, 50).
The values of z at these corner points are as follows.

The minimum value of z is 510 at (10, 50).
Thus, the amount of grain transported from A to D, E, and F is 10 quintals, 50 quintals, and 40 quintals respectively and from B to D, E, and F is 50 quintals, 0 quintals, and 0 quintals respectively.

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