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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
www.sanjivanimba.org.in
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
www.sanjivanimba.org.in
TRANSPORTATION & ASSIGNMENT
 At the End of the Session Student will be able to
understand-
A. General Procedure to Solve Transportation Problem
www.sanjivanimba.org.in
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.
www.sanjivanimba.org.in
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.
www.sanjivanimba.org.in
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
www.sanjivanimba.org.in
Thank You

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2.3 procedure to solve transportation problem

  • 1. www.sanjivanimba.org.in 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
  • 2. www.sanjivanimba.org.in 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
  • 3. www.sanjivanimba.org.in TRANSPORTATION & ASSIGNMENT  At the End of the Session Student will be able to understand- A. General Procedure to Solve Transportation Problem
  • 4. www.sanjivanimba.org.in 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.
  • 5. www.sanjivanimba.org.in 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.
  • 6. www.sanjivanimba.org.in EXERCISE  List down the steps involved in solving Transportation Problem.
  • 7. www.sanjivanimba.org.in For More Details Contact Dr. V M Tidake tidkevishal@gmail.com tidkevishalmba@sanjivani.org.in