The given solution is not optimal solution.
in the transportation problems there are three methods to calculate initial feasible solution.
1. northwest corner method (NWC)
2. Least cost method (LCM)
3. Vogel's approximation method (VAM)
the transportation cost of initial feasible solution through vogel approximation method will be least when compare to other two methods.
in the given question least cost method has been applied.
now VAM method shall be applied.
Algorithm for Vogel’s approximation method is as follows:
(i) Calculate penalties for each row and column by taking the
difference between the smallest cost and next highest cost
available in that row/column. If there are two smallest costs, then
the penalty is zero.
(ii) Select the row/column, which has the largest penalty and make
an allocation in the cell having the least cost in the selected
row/column. If two or more equal penalties exist, select one where
a row/column contains minimum unit cost. If there is again a tie,
select one where maximum allocation can be made.
(iii) Delete the row/column, which has satisfied the supply and
demand.
(iv) Repeat steps (i) and (ii) until the entire supply and demands
are satisfied.
(v) Obtain the initial basic feasible solution.
solution:-
BOSTON NY CH IN SUPPLY PENALTY
DT 1575 20175 16 21 250 1 1 5 1
PT 25 1355 55 1170 130 6 6 2 2
BF 15 15 7235 17 235 8
DEMAND 75 230 240 70
PENALTY 0 2 2 6
10 7 11 10
10 7 10
7 10
according to above solution LEAST TRANSPORT COST is
DT to boston 15*75= 1125
DT to NY 20*175= 3500
PT to NY 13*55= 715
PT to CH 5*5= 25
PT to IN 11*70= 770
BF to CH 7*235= 1645
total least cost 7780
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