Transportation Problem @ 133 Solution is given by X= 145 Xyy = 6; Xp =9} Xqy= 1; X= 1s Xy=4 Transportation cost =14x1+6x8+9x941x%243xK144x2 =Rs 156. 8.4.3 Vogel's Approximation Method (VAM) The steps involved in this method for finding the initial solution are as follows. Step 1 Find the penalty cost, namely the difference between the smallest and next smallest costs in each row and column. Step 2 Among the penalties as found in step(1) choose the maximum penalty. If this maximum penalty is more than one (i.e if there is a tie) choose any one arbitrarily, Step 3 In the selected row or column as by step(2) find out the cell having the least cost. Allocate to this cell as much as possible depending on the capacity and requirements. Step 4 Delete the row or column which is fully exhausted. Again compute the column and row penalties for the reduced transportation table and then go to step (2). Repeat the procedure until all the rim requirements are satisfied. Note If the column is exhausted, then there is a change in row penalty and vice versa. Example 8.5 Find the initial basic feasible solution for the following transportation problem by VAM. Seat —— ee D, ‘Si dD D, A uupply £ 0, a 13 Te] 250 | 2» 0, 16 18 10 300 ° 05 21 24 10 | 400 Demand | 200 225 250 | 950 | Solution since 5a,=5b,=950 the problem is balanced and there exists a feasible solution to the problem. : First we find the row & column penalty P, as the difference between the least and next least cost. The maximum penalty is 5. Choose the first134° Operations Research column arbitrarily. In this column choose the cell having the least ¢ name (1, 1). Allocate to this cell with minimum magnityg (.e.(250,200)-=200.) This exhausts the first column. Delete this o° umn, Since column is deleted, then there is a change in row penalty », and column penalty P,, remains the same. Continuing in this manner ,," get the remaining allocations as given in the table below. ce Lallocation Iallocation D, | Dz | Ds | Ds |Supply| Pr D, |D,|D, Supply |p) 0, iy Ds! Paya) 50 (2) Po, fas iz} ay S00 34} (200 ya 6 0; 16] Lis} L4{[10. wo alt ES [18 [lta] 0} 300} ~| oer a sr Cn 400 3 IDemand |225 275} 250) lor] Demand| 00 | 225 | 275|250] 175 0 P, ~ |st[3| 0 lar] P, st] 5 | at 0 M1 allocation IV allocation D, ‘| Dy. | D, \Supply | Pw D, | Dy \Supply[P,, 0, 18 | [14|Li0} 300) 4 0, |U4} WO} bs | 4 @ 125 GD) ofe 0; 24 | [13] U0} 400] 3 O; 13} Tol 400 | 3 [Demand] 175 | 275 | 250 Demand|275 | 250 0 125 P, [ot | t | 0 Py [i | 0 V allocation ‘Vi allocation f D,_|_D,_|Supply| Py D, _|Supply| Pu 0; 13[ Lo] ser | 3 Oo; to | j25' | 10 aD 125, | @)| 0 fe [Demand | 275 | 125 Demand | 125 0 P,_| 131 | 10 ial Pa 10 Finally we arrive at the initial basic feasible solution which is sho¥" in the following table.Transportation p, r roblem $435 D, D. 2 D, ie [eee te Supply i @® a T Tt 0, oe es 20 2 } GY Tet an bY A [Demand 200 225 275 250 +400 There are 6 positive independent alloc. m-+n—1=3+4—l1. This ensures that the sol basic feasible solution. ~. The transportation cost =11 x 200 + 13 x 50 + 18 x 175 + 10 x 125 + 13 x 275 + 10 x 125=Rs 12,075. ‘ations which equals to lution is a non-degenerate Example 8.6 Find the initial solution to the f ing TP followin; ir VAM. mie Destination 1 Pi Di Dy Di [Supply = Fy 4 T 100 3 Fy i Zz a Zz 125 = Fy T 3 3 Zz z Demand 120 80 75 25 300 Solution Since 3a,= b, the problem is a balance TP. .”. there Exists a feasible solution. D, [De | Da | Ds [Supply [Pi [Pu [Pn [Pw | Py | Pa [3 4] a r_ || | O1S| m | le eta a; ey, eye] 0. e F, @| © 125 © z yu SZ Ir eee gate | E, @® 75) = Demand [120 | 80] 75 | 25 P, an] a 1 1 Pe i 1 0 1 Pix T T 0 ia Pw i = D = Py ef e a Leer Py a =a [ea es136 Operations Research 45 ic feasil ution as given i Finally we have the initial basic feasible soll 8! nN the fol. lowing table. Demand | 120 gative allocations equal to m+ y)_ ere are 6 independent non-ne; ocat Th T he solution is non-degenerate hay, =344—1=6. This ensures that t feasible. + The transportation cost x45 44x 304 1x 2542 x 8044 x 45.4 1x 75 35 + 120 + 25 + 160 + 180 + 75 =Rs. 695. 8.5 OPTIMALITY TEST ‘Once the initial basic feasible solution has been computed, the next step in the problem is to determine whether the solution obtained is optimum or not. ns, Where m is the number of origins and n is the number of destinations. Also hese allocations must be in independent positions To perform this optimality test, we shall discuss the modified distr! bution method (MOD)). The various steps involved in MODI method for “performing optimality test are given below. 8.5.1 MODI Method Step 7 Find the initial basic feasible solution of a TP by using any one of the three methods. Step 2 Find out a set of numbers u, and v, for each row and column satisfying, 4; + ¥;=cy for each occupied cell. To start with we assign * number 0! to any row of column having maximum number of allocation’: If this maximum number of allocations is more than one, choose any 0" arbitrarily. Step 3 For each empty (unoccupi ied) nd ¥, written in the bottom left corner of a yell we find the sum u, ane"Transportat;, Step 4 Find out for each : “NSportation Problem 4 » as ™Mpty ce; 2oj-(u/ty) and which is written x 2 cell the net evaluation value A, ‘This step gives the optimality Bonetnas bottom tight corner of th; te tL : sion, at cell, (i) If all A, > 0 (ie. all the net evalu, and a unique solution ex; i) If A, > O then the solution j (ii) If atleast one A, <0 go to the next step, 137 ation va Valuc) the solution is optimum Optimum, but 4 - a ana Mate si i i ek sont a alternate solution exists. optimum. In this case we to impr PrOve the total transportation c Step 5 Select the empty cell hay From this cell we draw a closed p; Me the most negative value of A, . “i ath by drawing a ij lines with the corner cells occupied, Assign cane ein ah rata 8 and — alternately and find the minimum allocation from th i is a ative si This allocation should be added to the ssa ieuinetoaenta allocation havin iti i and subtracted from the allocation having negative sign. Eons te Step 6 The above step yield a better solution by making one (or more) occupied cell as empty and one empty cell as occupied. For this new set of basic feasible allocations repeat from the step(2) till an optimum basic feasible solution is obtained. Example 8.7 Solve the following transportation problem. Destination 7 2 R Ss ‘Supply 2 A 21 16 25 13 u = B 17 18 14 23 13 8 Cc 32) 17 18 aT 19 Demand 6 10 12 158 43 (MU, April 98) Origin\Dest |P |Q |R |S |Supply |Pi Py [Pm |Pw |Pv | Pv 21| 6] [25] 3} 1 gi (ecb ek eee A D 3 ={= 7} [rs | b4} 23 13 4 4 4 A B fo @ |® payorua el] | fy dy tide Cc \@ |© Demand _| 6 |10 |12 ist 43_| P, apie | # lot ks Pu tt [4 [ist Pur ist fa pas sep Pw =i a = [4 P, Tafagapety = — er ae ee Sapa