This document discusses transportation models and methods for solving transportation problems: 1. It defines a transportation problem as minimizing the cost of distributing a product from multiple sources to multiple destinations. Special methods are needed to solve transportation problems rather than the standard simplex method. 2. The Northwest Corner Rule and Row Minima Method are described as approaches that allocate shipments starting from the upper left cell and lowest cost cell in the first row, respectively, to exhaust supplies and demands in a certain order. 3. The aim of transportation models is to find an optimal transportation schedule that minimizes transportation costs. Various solution methods like the Northwest Corner Rule, Row Minima Method, and Least Cost Method are discussed.

1. Shri Govindram Seksaria Institute of Technology and Science
Department of Management Studies
Session: 2018-19
Transportation Model

2. CONTENTS
• Aim of Transportation Model.
• What is Transportation Model.
• Method of Transportation Model .
• NorthWest Corner Rule.
• Transortation Table.

3. Aim Of Transportation Model
• To find out optimum transportation schedule
keeping in mind cost of transportation to be
minimized.

4. What is a Transportation Problem?
• The transportation problem is a special type of
LPP where the objective is to minimize the cost
of distributing a product from a number of
sources or origins to a number of destinations.
• Because of its special structure the usual
simplex method is not suitable for solving
transportation problems. These problems
require special method of solution.

5. Methods of Transportation
Problem
North West Corner Rule (NWCR)
Row Minima Method
Column Minima Method
Least Cost Method
Vogle Approximation Method (VAM)

6. Northwest Corner Rule
The northwest-corner rule requires that we
start in
the upper left-hand cell (or northwest corner) of
the
table and allocate units to shipping routes as
follows:
• 1. Exhaust the supply (factory capacity) of
each row
before moving down to the next row.
• 2. Exhaust the (warehouse) requirements of

9. Row Minima Method
Row minima method consists in allocation as
much as
possible in the lowest cost cell of the first row so
that
either the capacity of the first plant is exhausted
or
the requirement at distribution centre is
satisfied or
both.