5. Revenue Generated
Total production :-600kg/month
Cost of sales :- Rs.40/100g
Total revenue :- Rs.240000/month
:- Rs.2880000/year
6. Transportation Problem
The Company has three production houses. The
overall production of Company is 600 kg per month.
Company divided his customer's in to three different
categories i.e. Local hotels & shops, D-Mart &
Other mall, 3-5 star hotels. To reduce the cost of
transport company have to find out the minimum cost
transport model by given data.
7. Production Customers Supply
A B C
House 1 6 4 1 50
House 2 3 8 7 40
House 3 4 4 2 60
Demand 20 95 35 150
Transportation detail:-
8. Production Customers Supply
A B C
House 1 6(20) 4(30) 1 50
House 2 3 8(40) 7 40
House 3 4 4(25) 2(35) 60
Demand 20 95 35 150
Solution of Problem
North west corner rule method
9. Solution of Problem
According to degeneracy rule
M+N-1
where as M is the no of row’s
and N is the no of columns.
3+3-1 = 5
NWCR:-
=6(20)+4(30)+8(40)+4(25)+2(35)
= 570
10. Balance sheet
Particular Amt Amt
Total Sales 2880000
(-) Expenses
Building 700000
Electricity 100000
Row material 190000
Transportation 650000
Salary 900000
Maintenance 80000
Insurance 40000
Total Expense (2660000)
Net Profit 220000