Transportation problems and its method. The organization wants its minimization of cost from the supply sources to the different demand destination but leads to some transportation problem to resolve them here are some methods.

1. TRANSPORTATION PROBLEM
Submitted to: Submitted by:
Mr. Kamal Sanguri Shaifali Pandey
MBA-IISem

2. It is a special case of linear programming
problem in which the objective is to transport
a commodity or services from several supply
origin to different demand destinantion at a
minium cost.

3. Total quantity of item at different source is
equal to the total requirement at different
destination.
Item can be transported from all sources to
the destination.
The transportation cost on a given root is
directly proportional to the o. of units shipped
on that root.
The objective is to minimize the total
transportation cost for the organization.

5. Feasible solution: A feasible soln. to
transportation problem is set of non- negative
allocation that row and column restrictions.
Basic fesiable solutions: A fesible soln. to a
transportation problem is said to be BFs if it
contain number more than m+n-1 non negative
allocation where m is no. of rows and n is no.
of column.

7. North west corner rule
Least cost Method
Vogel’s approximation Method(VAM)

8.  Method adopted to compute the initial feasible
solution of the transportation problem.
 The name North-west corner is given to this
method because the basic variables are selected
from the extreme left corner.

9.  Another method used to obtain the initial feasible
solution for the transportation problem.
 Here, the allocation begins with the cell which has
the minimum cost.
 The lower cost cells are chosen over the higher-
cost cell with the objective to have the least cost of
transportation.

10.  Write the difference of the smallest and 2nd
smallest cost in each column below the
corresponding column and write the similar
differences of each row to corresponding right
of row.
 Now we select row or column for which
penalty is largest and allocate the max. possible
amount to the cell with lowest cost.

11. If there are more than one largest
penalties than we select the row or
column in which we can allocate more
amount in the lowest cost cell.