Transportation Problem of Malaysian Petrochemical Company

Operations Research

Effective and efficient movement of products or services from point of supply to points of demand is crucial for any business. Transporting finished products to the market at the lowest possible costs leads to huge potential of cost savings and consequently maximize company’s profits. This report is about the minimum cost of transportation for a Malaysian Transportation Company from its 4 producing centres to the final source of demand i.e the destinations The motive is to achieve the minimum cost of transportation. Since cost minimization is related to the company’s profitability and efficiency, transportation modeling methods can be solved using linear programming. The models in this report were based on real life data and as example of transportation problem of a Malaysian Petrochemical company.

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