PRESENTED BY

SAGARIKA MOHANTY
REGD NO-160705110004
MSC 2nd YEAR
APPLIED MATHEMATICS
 OUTLINE
 Introduction To Transportation Problem
 Methods of Transportation Problem
 Finding an Initial Basic Feasible Solution
 Application Of Transportation Problem
TRANSPORTATION PROBLEM
INTRODUCTION
DEFINITION
Transportation problem is to transport various amount of a
single homogeneous commodity, that are initially stored at
various origins, to different destination in such a way that the
total transportation cost is minimum.
• It is the special kind of linear programming problem in which
goods are transported from a set of sources to a set of
destination, subject to the supply and demand of the sources
and destination in such a way that the total cost of
transportation is minimized.
• In simple words, the main objective of transportation
problem is to minimize the total transportation cost.
METHODS OF TRANSPORTATION
PROBLEM
There are a number of methods for generating
an initial feasible solution for a transportation
problem.
Consider three of the following
 North-West Corner Rule(NWCR)
 Least Cost Entry Method(LCEM)
Vogel’s Approximation Method(VAM)
Finding an Initial Basic Feasible
Solution
North -West Corner Method (NWCM)
The simplest of the procedures used to generate an initial feasible
solution is NWCM. It is so called because we begin with the North West
or upper left corner cell of our transportation table. Various steps of this
method can be summarized as under.
.
Step 1
Select the North West (upper left-hand) corner cell of the
transportation table and allocate as many units as possible
equal to the minimum between available supply and demand
requirement i.e., min (S1, D1).
Step 2
Adjust the supply and demand numbers in the
respective rows and columns allocation.
Step 3
 If the supply for the first row is exhausted, then
move down to the first cell in the second row and
first column and go to step 2.
If the demand for the first column is satisfied,
then move horizontally to the next cell in the
second column and first row and go to step 2.
Step 4
If for any cell, supply equals demand, then the
next allocation can be made in cell either in the
next row or column.
Least Cost Entry Method(LCEM)
This method takes into consideration the lowest cost and
therefore takes less time to solve the problem.
 Steps to solve the problem
Step 1
Select the cell having lowest unit cost in the entire table and
allocate the minimum of supply or demand values in that cell.
Step 2
Then eliminate the row or column in which supply or demand
is exhausted.If both the supply an demand values are same,
either of the row or column can be eliminated.
In case, the smallest unit cost is not unique, then select the cell
where maximum allocation can be made.
Step 3
Repeat the process with next lowest unit cost and continue
until the entire available supply at various sources and demand
at various destinations is satisfied.
 Vogel’s Approximation Method (VAM)
This method is preferred over the other two methods because the initial
feasible solution obtained is either optimal or very close to the optimal
solution.
Application Of Transportation
Problem
 The Transportation problem has a direct impact on real life.For example,
minimization of total cost, consumption of scarce resources like energy,
deterioration of goods during transportation and vehicle scheduling in
public transit influence day to day life.
 At present transportation acting vital role for financial development of
the country. Mixture of transportation and mobility are directly involved
with development of financial system of the country and for that mature
transportation infrastructure required.
 Minimize shipping costs from factories to warehouse(or from
warehouses to retail outlets).
 Determine lowest cost location for new factory, warehouse, office, or
other outlet facility.
 Find minimum cost production schedule that satisfies firm’s demand
and production limitations.
 Military distribution system.
Thank you