TRANSPORTATION PROBLEM

10:8. SOLUTION OF A
transportation problem involves the following major steps :
The solution to a problem as a linear programming problem.
Szep 1. Formulate the given
known as a transportation table
Sten 2. Set up the given L.P.P. in the tabular form
introduce a dummy TOW/oole
Sten 3. Examine whether total supply equals total demand. IT not,(+ve)
Supply/Demand as the difference of S n
having all its cost elements as zerO and
Demand.
supply and der.
Step 4. Find an initial basic feasible solution that must satisfy all the
conditions.
Step 5. Examine the solution obtained in step 4 for optimality, i.e., examine whether an improved
transportation schedule with lower cost is possible.
Step 6. If the solution is not optimum, modify the shipping schedule by including that unoccupied
cell whose inclusion may result in an improved solution.
Step 7. Repeat step 4 until no further improvement is possible.
We shall now discuss various methods available for finding an initial basic feasible soluion
then attaining an optimum solution.
TRANSPORTATION PROBLEM 253

FINDING
10:9. Fl AN INITIAL BASIC FEASIBLE SOLUTION
several methods available to obtain an initial basic feasible solution. However. we shall
There are the following three methods :
discusshhere the
Method,
LNorth-West Corner
Method, and
2. Least-Cost
1Vogel's Approximation Method (or Penalty Method).

1.
North-WWest Corner Method (NWC Rule)
and efficient method to obtain an initial basic feasible solution. Various steps of the
Itis a simple
method are :
Step 1. Select the north-west (upper left hand) corner cell of the transportation table and allocate
smuch as possible so that either the capacity of the first row is exhausted or the destination
requirement of the first column is satisfied, i.e., xj| = min. (a], b).
Step 2. 1f b, > aj, We move down vertically to the second row and make the second allocation of
ugnitude y =min. (az, b,-X) in the cell (2, 1).
it b, <aj: we move right horizontally to the second column and make the second allocation of
gnitude N; = min. (a - | : b) in the cell (1, 2).
= d, there is a tie for the second allocation. One can make the second allocation of
-ude
X|3 =min. (aj - a, b) = 0in the cell (1, 2),
21=min. (az, bË - b) = 0 in the cell (2, I).
ep 3. Repeat steps I and 2 moving down towards the lower/right corner of the
O1e until all the rim requirements are satisfied. transportation
 2. Least-Cost Method or Matrix Minima Method
This method takes into account the minimum unit cost and can be summarized as follows
Sten L Determine the smallest cost in the cost matrix of the transportation table. Let it be
Allocate ij = min. (a,, b) in the cell (i, j).
Step 2. If x., = a, cross off the ith row of the transportation table and decrease b, by a,. Go to step 3.
If x, =b,cross off the jth column of the transportation table and decrease a, by b; Go to Step 3.
If x,, = a, = b, cross off either the ith row or jth column but not both.
Step 3. Repeat steps I and 2 for the resulting reduced transportation table until all the rim
requirements are satisfied. Whenever the minimum cost is not unique, make an arbitrary choice among
the minima.
 28 asE 0 .
Vogel's Approximation Method (VAM)
Approximation
TheVogel's Method takes into account not only the
The steps of the method are given least cost c, but also the costs that
For each row of the below
Ntermine the differencé between transportation table identify the smallest and the
enclosing
them for cach row.
them in parenthesis against the Display them alongside thenext-to-smallest
cach column. respective rows. Similarly, cormpute thetransportation
differences
Sen 2. ldentify the row or column with the
ie occurs, use any arbitrary largest difference among all the rows and columns.
tie-breaking choice.
let .. be the smallest cost in the ith Let the greatest difference correspond to ith row
row. Allocate the maximum feasible amnount
= min. (a, b;) in the (i, )Dth cell and cross off either the ith row or the
jth column in the usual
manner.
Step 3. Recompute the column and row differences for the reduced
sten 2. Repeat the procedure until all the rim requirements are satisfied. transportation table and go to
Remarks 1. A row or column "difference"" indicates the minimum unit penalty incurred by failing to
make an allocation to the smallest cost cell in that row or column.
2. It will be seen later that VAM determines an initial basic feasible solution which is very
close to
the optimum solution, that is, the number of iterations required to reach the optimum solution is smaller
in this case.