To,
Prof: Samprit Chakraborty
Presented by:-
Manish Kumar
Prerna Mahansaria
Nirmal Samsukha
Himanshu Singh
Saugat Sen
Atryee Chatterjee
Ashwini Pandey
Swapna Agarwal
•Problem are basically routine problem which deal with
the supply of goods and materials from the place of
origin to the place of destination
•The main objective of transportation problem is to
satisfy the requirements of the consumers at the
minimum possible transportation cost.
• NORTH-WEST METHOD
• LEAST COST METHOD
• VOGEL’S APPROXIMATION METHOD(VAM)
• VAM is an interactive procedure for
computing a basic feasible solution of a
transportation problem.
• The solution obtained by this method is either
optimal or very close to the optimal solution.
1. ∑DD = ∑ SS i.e., Total Demand equals to Total
Supply
2. Find the Penalty
3. Identify the Maximum Penalty
4. If there is a tie in penalty, choose the Row or
Column with the minimum cost.
5. Repeat all the above steps
STEP 1
• We will take the cells with the minimum units in each row
and column and then find out the difference between them
O1 :D3-D4=17-4=13
O2 :D3-D4=9-7=2
O3 :D3-D4=20-15=5
D1 :O1-O2=24-20=4
D2 :O2-O1=37-22=15
D3 :O1-O2=17-9=8
D4 :O2-O1=7-4=3
SOLUTION
CALCULATING PENALTY FOR TABLE 1
40
The highest penalty occurs in the second column. The minimum in this column is c12
(i.e. 22). So X12=40 and the second column is eliminated.
80
30
10 30
50