1

VAM
Transportation Techniques

K. R. Der
Asst. Prof. Mechanical
Government Engineering College, Bhuj
 2

VAM
Includes
Balanced problem.
Transportation cum production cost.
unbalanced problem.
Vogel’s Approximation Method (VAM) 3

VAM also known as a penalty cost method.

Consider a case where instead of least cost, allocation is
made in the higher cost cell. It indicates that transportation
cost is increases by a value which is the difference
between least cost and the next higher cost.
Thus in VAM this value (known as penalty) is calculated
first and allocation is made to avoid such mistake.
Vogel’s Approximation Method (VAM) 4

Penalty is the difference between least cost and next least

cost. It is calculated row wise and column wise.
Allocation is made in row or column which have
maximum penalty and least cost value.
Once the allocation is made considering rim condition,
either row or column cancelled from matrix (by drowing
line), so for next allocation again penalty is required to be
calculated from remaining cost matrix.
Process is continuous till all allocations are made.
 5
A'bad Morbi Surat Bhuj A Penalty
2 5 3 8
Anand 11 11 1
4 1 6 4
Rajkot 4 6 2 3
7 5 8 2
G’dham 5 5 3

R 8 4 7 3
8 0 7 3

Penalty 2 4 3 2

VAM
 6
A'bad Morbi Surat Bhuj A Penalty
2 5 3 8
Anand 11 11 1
4 1 6 4
Rajkot 4 2 2 0
7 5 8 2
G’dham 3 5 2 5

R 8 0 7 3
8 0 7 0

Penalty 2 -- 3 2

VAM
 7
A'bad Morbi Surat Bhuj A Penalty
2 5 3 8
Anand 7 11 4 1
4 1 6 4
Rajkot 4 2 2 2
7 5 8 2
G’dham 3 2 2 1

R 8 0 7 0
8 0 0 0

Penalty 2 -- 3 --

VAM
 8
A'bad Morbi Surat Bhuj A Penalty
2 5 3 8
Anand 4 7 4 0 --
4 1 6 4
Rajkot 2 4 2 0 --
7 5 8 2
G’dham 2 3 2 0 --

R 8 0 0 0
0 0 0 0

Penalty 2 -- -- --

VAM
 9
A'bad Morbi Surat Bhuj Availability Penalty
2 5 3 8
Anand 4 7 11 11 11 4 0 1 1 1
4 1 6 4
Rajkot 2 4 6 2 2 2 0 3 0 2
7 5 8 2
G’dham 2 3 5 5 2 2 0 3 5 1

8 4 7 3
8 0 7 3
Requirement 8 0 7 0 Minimum Z = 2(4) + 3(7)
8 0 0 0 +4(2) +
0 0 0 0 1(4)
2 4 3 2 + 7(2) +
Penalty 2 -- 3 2 2(3)
2 -- 3 -- = 61
= (6100)
Find the initial feasible solution of the following transportation 10
matrix using Vogel's approximation method.

W1 W2 W3 W4 Capacity
19 30 50 10
F1 7
70 30 40 60
F2 9
40 08 70 20
F3 18

Requirement 5 8 7 14
 11

In early stage, you have to solve the

problem by making new table for each
stage as shown in next 5 slides
VAM 12

W1 W2 W3 W4 C P
19 30 50 10
F1 7 9
70 30 40 60
F2 9 10
40 08 70 20
F3 8 18 10 12

R 5 8 7 14
0
P 21 22 10 10
VAM 13

W1 W2 W3 W4 C P
19 30 50 10
F1 5 7 2 9
70 30 40 60
F2 9 20
40 08 70 20
F3 8 10 20

R 5 0 7 14
0
P 21 -- 10 10
VAM 14

W1 W2 W3 W4 C P
19 30 50 10
F1 5 2 40
70 30 40 60
F2 9 20
40 08 70 20
F3 8 10 10 0 50

R 0 0 7 14
4
P -- -- 10 10
VAM 15

W1 W2 W3 W4 C P
19 30 50 10
F1 5 2 2 0 40
70 30 40 60
F2 9 20
40 08 70 20
F3 8 10 0 --

R 0 0 7 4
2
P -- -- 10 50
VAM
16
R 5 8 7 14
C W1 W2 W3 W4 No need to calculate
C P
penalty as only one row
19 30 50 10
7 F1 5 2 0 -- left.
70 30 40 60
9 F2 7 2 9 0 20
40 08 70 20
18 F3 8 10 0 --

R 0 0 7 2
0 0 Transportation Cost
Z = 19x5 + 10x2 + 40x7
P -- -- -- -- + 60x2 + 08x8 + 20x10
=759
 17

Once you have enough practice, you may

solve this problem in one table as shown in
next slide by re-calculating penalty, capacity
& requirement after each allocation.
 W1 W2 W3 W4 C1 C2 C3 C4 C5 C6 P1 P2 P3 P4
19 30 50 10
F1 5 2 7 7 2 2 0 0 9 9 40 40 18
70 30 40 60
F2 7 2 9 9 9 9 9 0 10 20 20 20
40 08 70 20
F3 8 10 18 10 10 0 0 0 12 20 50 --

R1 5 8 7 14
R2 5 0 7 14
R3 0 0 7 14 Transportation Cost
R4 Z = 19x5 + 10x2 + 40x7
0 0 7 4
R5 + 60x2 + 08x8 + 20x10
0 0 7 2
R6 0 0 0 0 =759
P1 21 22 10 10
P2 21 -- 10 10
P3 -- -- 10 10
P4 -- -- 10 50
Find the initial feasible solution for given 19
transportation problem using Vogel’s approximation
Method. (VAM)
1 2 3 4 C
7 2 5 5
A 30
4 4 6 3
B 15
5 3 3 2
C 10
4 0 4 2
D 20

R 20 25 15 15
 1 2 3 4 C1 C2 C3 C4 C5 C6 C7 P1 P2 P3 P4 P5
7 2 5 5
A
25 5 30 5 5 5 5 5 0 3 0 2 2 2 20
4 4 6 3
B
15 15 15 15 15 0 0 0 1 1 2 2 --
5 3 3 2
C 10 10 10 0 0 0 0 1 1 2 -- --
10
4 0 4 2
D 20 20 5 5 5 0 0 2 2 0 0 0
5 15
R1 20 25 15 15
Cost Unit
R2 20 0 15 15
R3
A2 2 25 50
20 0 15 0
R4 20 0 5 0
A3 5 05 25
R5 5 0 5 0 B1 4 15 60
R6 0 0 5 0 C3 3 10 30
R7 0 0 0 0 D1 4 05 20
P1 0 2 1 0 D4 2 15 30
P2 0 -- 1 0 Transportation Cost 215
P3 0 -- 1 --
P4 0 -- 1 --
P5 3 -- 1 --
Unbalanced problem 21
 When capacity of plant and requirement of warehouses
differs, it is called unbalanced transportation problem.
 Before starting to solve the problem, it must be balanced
either by adding dummy plant or warehouse whichever is
required with lacking quantity to balance the rim condition.
 As dummy plant (row) or dummy warehouses (column) is an
imaginary, its transportation cost considered as zero.
 Once the problem is balanced it is solved by any method.
A product is produce in four factories A,B,C & D the unit
production cost are Rs. 2, 3, 5 & 1 respectively. Find out the 22
production cum transportation cost to minimize total
transportation cost for the following table.
1 2 3 4 Cap
2 4 6 11
A 50
10 8 7 5
B 70
13 3 9 12
C 30
4 6 8 3
D 50

Req. 25 30 105 20
As it is required to minimize production cum transportation cost,
we have to add production cost of each plant in to transportation 23
cost.
So production cum transportation table becomes
Pr.C 1 2 3 4 Cap
2+2 4+2 6+2 11+2
A2 A 50
10+3 8+3 7+3 5+3
B3 B 70
13+5 3+5 9+5 12+5
C5 C 30
4+1 6+1 8+1 3+1
D1 D 50

Req. 25 30 105 20
So the revised production cum transportation table is
As (200) ≠ (180) 24
the problem is unbalanced one

1 2 3 4 Cap
4 6 8 13
A 50
13 11 10 8
B 70
18 8 14 17
C 30
5 7 9 4
D 50
200 /
Req. 25 30 105 20 180
It is balanced by introducing dummy warehouse (Column) with 20 unit
requirement and Rs.0 pro cum transportation cost as shown. 25

1 2 3 4 Dummy Cap
4 6 8 13 0
A 50
13 11 10 8 0
B 70
18 8 14 17 0
C 30
5 7 9 4 0
D 50

200 /
Req. 25 30 105 20 20
200
 1 2 3 4 D C1 C2 C3 C4 C5 C6 P1 P2 P3 P4
4 6 8 13 0
A 25 25 50 50 50 25 25 0 4 2 4 5 26
13 11 10 8 0
B 50 70 50 50 50 50 0 8 2 2 2
20
18 8 14 17 0
C 30 30 0 0 0 0 8 6 -- --
30
5 7 9 4 0
D 50 50 50 50 30 0
30 20 4 1 1 5

R1 25 30 105 20 20 Cost Unit

R2 25 30 105 20 0 A1 4 25 100
R3 25 0 105 20 0 A3 8 25 200
R4 0 0 105 20 0 B3 10 50 500
R5 0 0 105 0 0 BD 0 20 00
R6 0 0 0 0 0 C2 8 30 240
P1
D3 9 30 270
1 1 1 4 0
P2 1 1 1 4 --
D4 4 20 80
P3 1 -- 1 4 -- Prod cum Trans. Cost 1380
P4 -- -- 1 4 --