Step 2:
The cost of transportation per km for 10litre oil is Rs.1.
Hence the cost of transportation/km/litre=Rs110=Rs0.1
⇒ Z=0.7x+0.6y+0.3[7000−(x+y)]+0.3(4500−x)+0.4(3000−y)+0.2[(x+y)−3500]
On simplifying we get,
Z=0.3x+0.1y+3950
Now the corner points are A(500,3000),B(3500,0),E(4500,0),C(4500,2500) and D(4000,3000)
Step 4:
Now let us calculate the values of the objective function as follows :
At the points (x,y) the value of the objective function subjected to Z=0.3x+0.1y+3950
At A(500,3000) the value of the objective function subjected to Z=0.3×500+0.1×3000+3950=4400
At B(3500,0) the value of the objective function subjected to Z=0.3×3500+0+3950=5000
At E(4500,0) the value of the objective function subjected to Z=0.3×4500+0+3950=5300
At C(4500,2500) the value of the objective function subjected to Z=0.3×4500+0.1×2500+3950=5550
At C(4000,3000) the value of the objective function subjected to Z=0.3×4000+0.1×3000+3950=5450
Step 5:
It is clear that the minimum transport charges are Rs.4400 at A(500,3000).
When x=500 andy=3000,
500L,3000L and 3500L of oil should be transported from depot A to petrol pumps D,E and F and 4000L,0L of oil be transported from depot B to petrol pumps D,E and F with minimum cost of transportation of Rs.4400.