Transportation Cost Optimization of an Online Business Applying Vogel’s Approximation Method

Red Tech. BD, an online based business company intended to spread their business over whole Rajshahi District. As there is no cost for manufacturing the only factor that can maximize the profit is the product transportation cost. Determination of the optimum & reliable transportation medium was the first challenge. A suitable destination for distributing the products in the selected location has been chosen carefully on the basis of demand & minimum rent of warehouse. First, the mathematical model has been formed & then it has been solved by a program written in ‘C’ programming language. The program can show the result of the optimum amount of supply with the corresponding destination together in a single output. Verification of the program or ‘code’ has been done with the help of hand calculation. The company can determine the supply unit with destination to minimize the transportation cost before every shifting of products from warehouse to the destination.