How to do logistics

 

Suppose you have a food store chain with 6 stores. Store A,B,C and D are small stores selling 200 l of milk a day, E and F are larger, they need 500 l a day. Altogether you need 4x200+2x500=1800 l milk.

You have 3 farms supplying you with milk, but with different prices and transportation costs. Farm 1 can supply 1000 l, Farm 2 and 3 400 l each.

EuroOffice Solver will tell you how much milk you should transport from which farm to which store to get the lowest possible cost. This is how it goes:

The following table summarizes the :

1. Create a table containing the capacity of the farms, the demand of the stores and costs of getting 1 l of milk from each of the farms to any of the stores. If transportation is impossible between a farm and a store then enter "X" in the cell corresponding to the supplier and consumer instead of a numerical value for the cost function.

Transportation Problem

2. Select the Tools / EuroOffice Solver / Hungarian algorithm menu command.

3.  In the dialog that appears you set the cell range that describes the problem. If there is a range selected when you open the dialog it will be assumed to be the problem range.

4. Select the cell range to output the solution to. In our case this will be a 3 times 6 cell range.

5. You can, but don't need to select a cell that contains the optimized total cost.

Hungarian algorithm

6. Press OK, and the problem is solved:

Transportation Problem Solution