Transportation problems

North-West Corner Method (NWCM) Steps (Rule)

Step- Select the upper left corner cell of the transportation matrix and allocate
1: min(s1, d1).
Step- a. Subtract this value from supply and demand of respective row and
2: column.

b. If the supply is 0, then cross (strike) that row and move down to the
next cell.

c. If the demand is 0, then cross (strike) that column and move right to
the next cell.

d. If supply and demand both are 0, then cross (strike) both row &
column and move diagonally to the next cell.
Step-
Repeat these steps until all supply and demand values are 0.
3:

Least Cost Method (LCM) Steps (Rule)

Step- Select the cell having minimum unit cost cij and allocate as much as
1:
( )
possible, i.e. min si,dj .

Step- a. Subtract this min value from supply si and demand dj.
2:
b. If the supply si is 0, then cross (strike) that row and If the demand dj is
0 then cross (strike) that column.

c. If min unit cost cell is not unique, then select the cell where maximum
allocation can be possible
Step- Repeat these steps for all uncrossed (unstriked) rows and columns until
3: all supply and demand values are 0.
Vogel's Approximation Method (VAM) or penalty method
This method is preferred over the NWCM and LCM, because the initial basic
feasible solution obtained by this method is either optimal solution or very nearer
to the optimal solution.
Vogel's Approximation Method (VAM) Steps (Rule)
Step-1: Find the cells having smallest and next to smallest cost in each row and
write the difference (called penalty) along the side of the table in row
penalty.
Step-2: Find the cells having smallest and next to smallest cost in each column
and write the difference (called penalty) along the side of the table in each
column penalty.
Step-3: Select the row or column with the maximum penalty and find cell that has
least cost in selected row or column. Allocate as much as possible in this
cell.
If there is a tie in the values of penalties then select the cell where
maximum allocation can be possible
Step-4: Adjust the supply & demand and cross out (strike out) the satisfied row or
column.
Step-5: Repeat these steps until all supply and demand values are 0.
(1) D1 D2 D3 D4 Supply
S1 3 1 7 4 300
S2 2 6 5 9 400
S3 8 3 3 2 500
Demand 250 350 400 200

(2) D1 D2 D3 D4 Supply
S1 11 13 17 14 250
S2 16 18 14 10 300
S3 21 24 13 10 400
Demand 200 225 275 250

(3) D1 D2 D3 D4 Supply
S1 19 20 50 10 700
S2 70 30 40 60 900
S3 40 8 70 20 1800
Demand 500 800 700 1400

(4) D1 D2 D3 D4 Supply
S1 8 6 10 9 35
S2 9 12 13 7 50
S3 14 9 16 5 40
Demand 45 20 30 30

(5) D1 D2 D3 D4 Supply
S1 6 4 1 5 140
S2 8 9 2 7 160
S3 4 3 6 2 50
Demand 60 100 150 40

(6) D1 D2 D3 D4 Supply
S1 1 2 1 4 30
S2 3 3 2 1 50
S3 4 2 5 9 20
Demand 20 40 30 10

(7) D1 D2 D3 D4 Supply
S1 19 30 50 10 7
S2 70 30 40 60 9
S3 40 8 70 20 18
Demand 5 8 7 14

(8) D1 D2 D3 Supply
S1 4 5 1 40
S2 3 4 3 60
S3 6 2 8 70
Demand 70 40 60
Answer Key:
Q. No. NWCR LCM VAM
1 4400 2900/ 2850 2850
2 12200 12200/12825 12075
3 99500 81400 77900
4 1180 1080 1020
5 1280 1560 1140
6 310 200 180
7 1015 814 779
8 870 520 480