This document outlines the general procedure for solving a transportation problem which includes 8 steps: 1) Define the objective function to be minimized, 2) Set up the transportation table, 3) Add dummy rows or columns if needed, 4) Develop an initial feasible solution, 5) Examine the feasibility of the initial solution, 6) Test the solution for optimality using opportunity costs, 7) If not optimal, improve the solution using stepping stone or MODI methods, 8) Repeat steps 4-6 until an optimal solution is found. The document was presented by Dr. V. M. Tidake and discusses transportation and assignment problems.

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Unit No.2.
DECISION SCIENCE
Presented By:
Dr. V. M. Tidake
Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem)
Professor & Head Dept. of MBA
1
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in

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302-DECISION SCIENCE
Unit No.2. Transportation &
Assignment
2.3 General Procedure to solve
Transportation Problem
Presented By:
Dr. V. M. Tidake
Ph. D (Financial Management), MBA(FM), MBA(HRM) BE(Chem)
Professor & Head Dept. of MBA
2
Sanjivani College of Engineering, Kopargaon
Department of MBA
www.sanjivanimba.org.in

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TRANSPORTATION & ASSIGNMENT
 At the End of the Session Student will be able to
understand-
A. General Procedure to Solve Transportation Problem

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GENERAL PROCEDURE TO SOLVE
Transportation PROBLEM
Step1) Define the Objective Function to be minimized.
Step2) Set up the Transportation Table with m rows
representing Sources and n Columns representing
Destinations.
Step3) Add Dummy Row or Column if Necessary.
Step4) Develop Initial Feasible Solution by using either
NWCM, LCM or VAM.

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GENERAL PROCEDURE TO SOLVE
Transportation PROBLEM
Step5) Examine the feasibility of Initial Solution. The
solution is feasible if it has (m+n-1) independent occupied
cells.
Step6) Test the Solution (if Feasible) for optimality by
finding out Opportunity Cost for all the unoccupied or
empty cells. Non Negative Opportunity Cost for all the
empty cells indicates that the solution is Optimal.
Step7) If the Solution is not Optimal, we improve it by
using Stepping Stone Method or MODI Method.
Step8) Repeat Steps 4, 5 & 6 until an Optimal Solution is
obtained.

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EXERCISE
 List down the steps involved in solving Transportation
Problem.

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For More Details Contact
Dr. V M Tidake
tidkevishal@gmail.com
tidkevishalmba@sanjivani.org.in

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Thank You