Operations Management Case Study

"Utilisation of Transportation Method in Sandino Furniture"

OR

Abstract:
Sandino Furniture (Sandino) is a one-stop shop for all the furniture needs of the customers. The shop, which is located in Sydney, Australia, manufactures beds at three different locations namely Sydney, Perth and Melbourne and distributes them through warehouses located in Kingston, Darwin and Brisbane. The case study mainly discusses as to how the company has used the transportation model. The case study centres on how the company has selected the shipping routes, which have to be used to transport the desks to minimise the total transportation cost by using Transportation model.

Pedagogical Objectives:

• To understand the basics of Transportation Models
• To explain different ways of developing initial solution in Transportation problems using Vogel’s Approximation Method
• To calculate improvement index using Stepping Stone Method or MODI Method.

Keywords : transportation model, northwest corner rule, stepping stone method, Modi method, Vogel’s approximation method, optimal solution, transportation problems, initial solution

Contents:

• Introduction
• Suggested Questions for Discussion