Various Terminologies used in solving Transportation Problem

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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
2.2 Terminology in
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. Terminology in Transportation Problem

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Terminology of Transportation model
Balanced
Transportation
Problem: If Total
Supply equals Total
Demand.
Unbalanced
Transportation
Problem: If Total
Supply does not
equals Total Demand.
Transportation Table:
PLANT
WAREHOUSE
SUPPLYMumbai Pune Ahmedab
ad
Bangalore
10 10 10
--- 130
Hyderaba
d
10 10
---
10
120
Kolkata
10 10
---
10
130
DEMAND 210 60 110 380
70 60
60
80 50
60

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Terminology of Transportation model
Dummy Source or Destination: It is a dummy row or column (having
0 transportation cost per cell) to be added in order to balance the
Transportation Problem.
Initial Feasible Solution: It is a solution that satisfies the demand and
supply conditions and yet it may or may not be the optimum one.
There are 03 methods to obtain the same-
a) North West Corner Method (NWCM)
b) Matrix Minima or Least Cost Method (LCM)
c) Vogel’s Approximation Method (VAM)
Optimum Solution: It is a feasible solution which also gives a
minimum cost transportation plan.
There are 02 methods to obtain the same-
a) Stepping Stone Method or
b) Modified Distribution Method (MODI)

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EXERCISE
 List down and Explain the various terminologies used
in 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