The case deals with the optimum procurement and allocation plan of explosives for various subsidiaries of Coal India Limited (CIL). Explosives, an expensive input, play a crucial role in the process of coal mining. A good amount of money is also spent on its transportation. Taking into account the locations of the CIL subsidiaries and that of the various explosive factories, a systematic approach is needed for the proper procurement and allocation of explosives, so as to optimize on transportation cost, as well as to ensure balanced despatches and reliability.