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ABC Chemicals manufacturers detergent in their three plants situated in Delhi, Bombay and Kolkata with capacities of 75,65 and 70 tonnes of detergent per day respectively. They market these from three warehouses situated in Nagpur, Lucknow and Baroda with requirements of 80,90 and 40 tonnes of detergent per day respectively.

The transportation cost per tonne of detergent from different plants to different warehouses is as follows:

From

To


Nagpur

Lucknow

Baroda

Transport cost /tonne (Rs.)

Delhi

15

20

20

Bombay

30

40

30

Kolkata

20

30

40

Work out a distribution strategy, which will incur minimum transportation cost.

Strategic Management, Management Studies

  • Category:- Strategic Management
  • Reference No.:- M92175063

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