Abstract
In this research work, the study used transportation problem techniques to determine minimum cost of transportation of Gimbiya Furniture Factory using online software, Modified Distribution Method (MODI). The observation made was that if Gimbiya furniture factory, Birnin Kebbi could apply this model to their transportation schedule, it will help to minimize transportation cost at the factory to ₦1,125,000.00 as obtained from North west corner method, since it was the least among the two methods, North west corner method and Least corner method. This transportation model willbe useful for making strategic decision by the logistic managers of Gimbiya furniture factory, in making optimum allocation of the production from the company in Kebbi to various customers (key distributions) at a minimum transportation cost.
 Keywords: North West corner, Least corner, Transportation problem, minimum transportation.
Highlights
Every business environment is faced with challenges of transporting the products from the sources to their destinations (e.g. Customers), since the aim of any business is to maximize profit
The transportation problem is one of the fundamental problems of network flow problem which is usually used to minimize the transportation cost for industries to transport goods, which deals with shipping commodities from sources to destinations
Each row is labeled with its corresponding source name at the left margin; each column is labeled with its corresponding destination name at the top margin; the supply from each source I is listed at the right margin of the ith row; the demand at destination jth column; the transportation cost Cij is listed in a subcell located at the upper – left corner of cell (i, j); and the value of xij is to be entered at the lower – right corner of cell (i, j)
Summary
Every business environment is faced with challenges of transporting the products from the sources (e.g. factory) to their destinations (e.g. Customers), since the aim of any business is to maximize profit. Transportation model plays a vital role to ensure the efficient movement and in – time availability of raw materials and finished goods from sources to destinations. It is a linear programming stemmed from a network structure consisting of a finite number of nodes and arcs attached to them. Solving transportation problems where products are to be supplied from one side (Sources) to another (demands) with a goal to minimize the overall transportation cost represents on activity of great importance. Uddin (2012) extends the earlier application of finding initial basic feasible solution (IBFS) of transportation problem in cost minimization to transportation time minimization, using an algorithmic approach. An online application was developed using North – West Corner (NWC) rule to automate the analysis of system
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