Question: The Logistics Director of an international relief agency is planning the transportation of food grains to a drought hit area for a two month period. The donor country is willing to supply 250,000 tonnes and 300,000 tonnes, respectively, in the two months in question. The loading/unloading costs are met by the donor and recipient countries, respectively, but the international agency has to meet the cost of transport and storage at the destination port.

The grain is to be shipped in 50,000 tonne cargo deadweight bulk carriers and the charter rates expected for the two months in question are $£ 50,000$ and $£ 65,000$, respectively, per shipload. It has been estimated that if the grain is transported for distribution and consumption in the same month, the storage costs are negligible, but if it is transported in the first month for consumption in the second the storage cost would be $£ 10,000$ per shipload. The minimum requirements in the two months are 200,000 and 250,000 tonnes respectively, but an additional amount of 100,000 tonnes per month would be useful, according to local relief workers.

Determine the optimal transportation strategy for the Logistics Director and estimate the funds that he would require for carrying it out.

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