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org © 2020 IJCRT | Volume 8, Issue 5 May 2020 | ISSN: 2320-28820

A Little Modification in Least Cost Method for

Unbalanced Transportation Problem
Mr Vivek Kumar, Assistant Professor, Department of Mathematics,
G.C. Dharamshala (H.P) -176215, India

Abstract
Operation research is a branch of mathematics whereas Transportation problem is sub-branch of operation
research. Transportation Problem can be solved by many methods such as North West Corner Rule (NWC),
Least Cost Method (LCM), and Vogel’s Approximation Method (VAM) etc. In this paper we are discussing
Least Cost Method for unbalanced transportation problem and way of allocations to dummy row/column. We
have made a few modifications in our proposed algorithm which gives minimum cost or nearer to optimal
cost.
Terms used: Transportation Problem, LCM, VAM, unbalanced transportation problem, Feasible Solution,
Optimal Solution.

Existing Methods: Initially we mention that there are several algorithms exists for finding feasible solution of
Transportation Problem such as North West Corner Rule (NWC), Least Cost Method (LCM), Vogel’s
Approximation Method (VAM) etc.

Existing algorithm of LCM is given below:

Step-1: Find the minimum/smallest cost element in the cost matrix.

Step-2: Allocate to the least/smallest element as per demand and supply. Allocate min (Supply, Demand).

Step-3: If minimum cost appear in two or more times in a cost matrix allocate as much as possible to the variable
with the least cost in the selected row or column.
Step-4: Give the supply and demand and cross the satisfied row or column.
Step-5: For second allocation find the next least element and allocate according demand and supply.
Step-6: Continue the process until all demands and supply exhausted .
Step-7: For total cost multiply allocations to initial costs and add
This existing method has confusion for a unbalanced transportation problem regarding allocation to zero in
dummy row. So I have suggested a method for unbalanced problem which will remove the discrepancy of
allocation to zero.
Proposed: LCM method for Unbalanced Transportation Problem.

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Unbalanced Transportation Problem: The transportation problem in which sum of demand is not equal to sum
of supply is called unbalanced transportation problem. To solve UBTP first we make it balance by adding
Dummy row/Column having cost zero.
Step-1: If the transportation is unbalanced add dummy Row/column with zero cost.
(i) If sum of demand is less than sum of supply then add Dummy column with Demand=(Sum of supply-
Sum of demand)
(ii) If sum of supply is less than sum of demand then add Dummy row with Supply=(Sum of demand-Sum
of supply)
Step-2: Now in balanced transportation problem find the minimum/smallest element.
Step-3: In all zeros of dummy row/column to which zero we have to allocate is confusion
Step-4: Firstly allocate that zero which is in the last row & in RHS of table which will
break the tie and will give least cost as compared with other than last row zero allocations.
Step-5: Give the supply and demand and cross the satisfied row or column.
Step-6: For second allocation find the next least element and allocate according demand and supply
Step-7: Continue the process until all demands and supply exhausted.
Step-8: For total cost multiply allocations to initial costs and add.

We are discussing here some examples for verification of method:-

Examples of unbalanced transportation problem

Example 1: Solve the following Transportation problem by LCM.

Source Destinations Supply

F1 F2 F3 F4 F5
M1 5 4 8 6 5 600
M2 4 5 4 3 2 400
M3 3 6 5 8 4 1000
Demand 45 400 200 25 300
0 0

Solution: Since the given problem is unbalanced Transportation Problem so we will add dummy row to make it
balance.

Source Destinations Dumm Supply

F1 F2 F3 F4 F5 y
M1 5 4 8 6 5 0 600
M2 4 5 4 3 2 0 400
M3 3 6 5 8 4 0 1000
Demand 45 400 200 25 300 400 2000/2000
0 0

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Method 1

In table 1 we are allocating to zero of first row as minimum element

Table 1
Source Destinations Dummy Supply
F1 F2 F3 F4 F5
M1 5 4 200 8 6 5 0400 600
M2 4 5 4 3 100 2300 0 400
M3 3450 6 200
5 8 150 4
200
0 1000
Demand 450 40 200 25 300
0 0

Total cost = 4x200 +0x400 +3x100+ 2x300 + 6x200 +5x200 +8x150 + 3x450=6450

In table 2 we are allocating to zero of second row as minimum element

Table 2

Source Destinations Dummy Supply

F1 F2 F3 F4 F5
400
M1 5 4 8 6020 5 0 600
M2 4 5 4 3 2 0400 400
450
M3 3 6 5200 850 4300 0 1000
Demand 45 400 200 25 300
0 0

. Total cost = 4x400 +0x400 + 4x300 + 6x200 +5x200 +8x50 + 3x450=6750

In table 3 we are allocating to zero of third row as minimum element

Table 3

Source Destinations Dummy Supply

F1 F2 F3 F4 F5
M1 5 4400 850 6015 5 0 600
M2 4 5 4 3100 2300 0 400
450
M3 3 6 5150 8 4 0400 1000
Demand 45 400 200 25 300
0 0

Total cost : 4x400+ 8x50 +6x150+ 3x100+ 2x300 +3x450 + 5x150 +0x400=5900

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Example 2 : Solve transportation problem by LCM

DESTINATION
A B C Supply
WAREHOUSE

X 11 21 16 14
Y 7 17 13 26
Z 11 23 21 36
Demand 18 28 25 71/76

Solution:
Since the given problem is unbalanced Transportation Problem so we will add dummy row to make it balance.

Table 1

DESTINATION
A B C
DUMMY Supply
WAREHOUSE

X 11 21 16 9 05 14
Y 7 18 17 13 8 0 26
Z 11 23 28 21 8 0 36
Demand 18 28 25 05 76/76

Total cost = 7x18+23x28+16x9+13x8+21x8+0x5=1186

Table 2
A B C
DESTINATION
DUMMY Supply
WAREHOUSE

X 11 21 16 14 0 14
Y 7 18 17 13 3 05 26
Z 11 23 28 21 8 0 36
Demand 18 28 25 05 76/76

Total cost=7x18+23x28+16x14+13x3+21x8+0x5=1201

Table 3
A B C
DESTINATION
DUMMY Supply
WAREHOUSE

X 11 21 16 14 0 14
Y 7 18 17 8 13 0 26

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Z 11 23 20 21 11 05 36
Demand 18 28 25 05 76/76

Total cost=7x18+17x8+23x20+16x14+21x11+0x5=1177

Observation: in above Example-1 least cost method gives the feasible solution

Table 1 6450 5600 Assigned zero of first

row
Table 2 6750 5600 Assigned zero of
second row
Table 3 5900 5600 Assigned zero of third
row

In Example 2

Table 1 1186 1119 Assigned zero of first

row
Table 2 1201 1119 Assigned zero of
second row
Table 3 1177 1119 Assigned zero of third
row

Result Analysis: In above two examples we observed that by assigning to zero of last row it provides the better
solution than other zeros (except the zero of last row). We also tried it for another unbalanced problems and found the
same observation.

Conclusion: In this paper we observed that unbalanced transportation problem solved by Least Cost Method gives
the minimum cost when zero in the last row allocated first. The solution/cost given by this method is not optimal but
it removes the discrepancy of allocation of zeros in dummy row. Allocations made by this criterion may give
minimum solution as compared with another but not guaranteed for all problems of different kinds.

References:

[1] Hamdy A. Taha. Operation Research: An In-troduction, Eighth Edition, ISBN-13: 978-01325559
[2] P. Rama Murthy. Operation Research, Second Edition, ISBN (13): 978-81-224-2944-2
[3] Hamdy A Taha. TORA Optimizing System Software.
[4] H.H. Shore The Transportation And Vogel Approximation Metdhod. Decision Science,1970
[5]Concise Course, Transportation And Game Theory Krishna Publication ,2018.
[6] Sharma. J.K. Operations Research-Theory And Application , Macmillan India Limited. New Delhi , 2005

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