Solve the Following Transportation Problem Using the Transportation Simplex Method

question 35

Essay

Solve the following transportation problem using the transportation simplex method. State the minimum total shipping cost. $$\begin{array} { c c | c c } \text { Origin } & \text { Supply } & \text { Destination } & \text { Demand } \\\hline \text { A } & 500 & \mathrm { X } & 300 \\\mathrm {~B} & 400 & \mathrm { Y } & 300 \\& & \mathrm { Z } & 300\end{array}$$ Shipping costs are: $$\begin{array} { c | c c c } && { \text { Destination } } \\\text { Source } & \mathrm { X } & \mathrm { Y } & \mathrm { Z } \\\hline \mathrm { A } & 2 & 3 & 5 \\\mathrm {~B} & 9 & 12 & 10\end{array}$$

---

Definitions:

Journalize

The process of recording transactions in an accounting journal, documenting the financial effects of transactions and events.

Residual Value

The anticipated amount that an asset is expected to generate when it is sold at the conclusion of its useful lifespan.

Intangible Asset

An asset that is not physical in nature, such as patents, trademarks, and copyrights, having value due to its potential to generate economic benefits.

Natural Resource

Assets derived from the earth, such as minerals, forests, and water, which are used to produce goods and services.