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Northwest-Corner Method of Allocation.: - 1 Filled Cells, Where M Number of Rows and N Number

The document describes three methods for allocating resources: the northwest-corner method which starts in the top-left corner, the least-cost method which allocates to the lowest cost cell, and Vogel's approximation method which takes costs into account over five steps to find an optimal starting solution.

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24 views2 pages

Northwest-Corner Method of Allocation.: - 1 Filled Cells, Where M Number of Rows and N Number

The document describes three methods for allocating resources: the northwest-corner method which starts in the top-left corner, the least-cost method which allocates to the lowest cost cell, and Vogel's approximation method which takes costs into account over five steps to find an optimal starting solution.

Uploaded by

oluvil
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Northwest-Corner Method of Allocation.

The northwest-comer method, as the name implies, begins allocation by starting at the northwest comer of the matrix (Cell S1D1 and assigning as much as possible to each cell in the first (Assign as many units as possible to each cell to meet the requirements of having no more than m +n 1 filled cells, where m = number of rows and n = number of columns. ) The procedure is then repeated for the second row, third row, and so on, until all row and column requirements are met.

Least-Cost Method of Allocation.


This method allocates as much as possible to the least-cost cell. Ties may be broken arbitrarily. Rows and columns that have been completely allocated are not considered, and the process of allocation is continued. The procedure is completed when all row and column requirements are addressed.

Vogel's Approximation Method of Allocation.


This method also takes costs into account in allocation. Five steps are involved in applying this heuristic: Step 1: Determine the difference between the lowest two cells in all rows and columns, including dummies. Step 2: Identify the row or column with the largest difference. Ties may be broken arbitrarily. Step 3: Allocate as much as possible to the lowest-cost cell in the row or column with the highest difference. If two or more differences are equal, allocate as much as possible to the lowest-cost cell in these rows or columns. Step 4: Stop the process if all row and column requirements are met. If not, go to the next step. Step 5: Recalculate the differences between the two lowest cells remaining in all rows and columns. Any row and column with zero supply or demand should not be used in calculating further differences. Then go to Step 2. The Vogel's approximation method (VAM) usually produces an optimal or near- optimal starting solution. One study found that VAM yields an optimum solution in 80 percent of the sample problems tested.

Example of VAM:

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