TRANSPORTATION PROBLEMS:

The transportation problem is a form of linear programming problem in which the goal is to reduce
the cost of transporting a given item from several sources or origins to multiple destinations. Each source
has a finite supply, and each destination must meet a demand. Shipping costs are directly proportional to the
quantity of units shipped from a source to a destination.

Problems:

1. A Manufacturer of Jeans is interested in developing an advertising campaign that will reach four
different age groups. Advertising campaigns can be conducted through TV, Radio and Magazines. The
following table gives the estimated cost in paisa or exposure for each age group according to the
medium employed. In Addition, maximum exposure levels possible in each of the media namely TV,
radio and magazine are 40, 30 and 20 million respectively. Also, minimum desired exposures within
each group, namely 13 - 18, 19 - 25, 26 - 35, 36 and older are 30, 25, 15 and 10 million. The objective
is to minimize the cost of attaining the minimum exposure levels in each age group. Formulate the data
and find the Feasible solution

MEDIA AGE GROUPS

  13-18 19-25 26-35 36 & Older
TV 14 8 12 16
RADIO 10 7 14 9
MAGAZINES 6 10 9 5

Solution:

As a 1st step let us formulate the given problem as a transportation problem:

MEDIA AGE GROUPS Exposures

  13-18 19-25 26-35 36 & Older Available
TV 14 8 12 16 50
RADIO 10 7 14 9 40
MAGAZINE
S 6 10 9 5 30
Min Exp 30 25 35 30 120

In the above problem Demand = 120 and supply = 120

Therefore Demand = Supply

Using North West Corner Method:

Total Cost = (14 * 30) + (8 * 20) + (7 * 5) + (14 * 35) + (5 * 30)

= 420 + 160 + 35 + 490 + 150

= 1,255 Rs

Using Least Cost Method:

Total Cost = (14 * 15) + (10 * 15) + (25 * 7) + (35 * 12) + (30 * 5)

= 210 + 150 + 175 + 420 + 150

= 1,105 Rs

Using Vogel’s Approximation method:

Total Cost = (25 * 8) + (25 * 12) + (14 * 10) + (30 * 9) + (30 * 6)

= 200 + 300 + 140 + 270 + 180

= 1,090 Rs

As we get lowest cost using Vogel’s method, we use the values as feasible solution for the given data = 1090.

2. Find solution using VAM method, also find optimal solution using Modi method

  D1 D2 D3 D4 Supply
S1 19 30 50 10 7
S2 70 30 40 60 9
S3 40 8 70 20 18
Deman
d 5 8 7 14 34

Solution:

Number of supply constraints = 3

Number of Demand constraints = 4

As we know Vogel’s approximation derives the least cost we choose to do VAM method

Using VAM Method:

We get the below solution as the allocation of demand and supply constraints,
Moving on to the Modi method to find the optimal solution

We have to find ui and vj for all the allocated cells

We consider V4 = 0, Other values being