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Transportation Problem Solutions

There are two phases to solving a transportation problem: 1) The initial basic feasible solution can be found using the North-West Corner Rule, Least Cost Method, or Vogel's Approximation Method. 2) The optimal basic solution is then found using the Modified Distribution Method, which improves upon the stepping stone method to minimize total transportation costs while meeting all supply and demand requirements.

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Willyn Lachica
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55 views1 page

Transportation Problem Solutions

There are two phases to solving a transportation problem: 1) The initial basic feasible solution can be found using the North-West Corner Rule, Least Cost Method, or Vogel's Approximation Method. 2) The optimal basic solution is then found using the Modified Distribution Method, which improves upon the stepping stone method to minimize total transportation costs while meeting all supply and demand requirements.

Uploaded by

Willyn Lachica
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

TWO PHASES OF SOLUTION OF TRANSPORTATION PROBLEM:

PHASE 1 – Initial Basic Feasible Solution

3 Methods

a) North-West Corner Rule (NWCR)


The procedure for constructing an initial basic feasible solution selects the basic variables one at
a time. It starts with allocating units to upper left hand corner of any transportation problem.

b) Least Cost Method (or Greedy Method)


The Least Cost Method is another method used to acquire the initial feasible solution for the
transportation problem. Using this, the allocation begins with the cell which has the minimum
cost. The lower cost cells are selected over the higher-cost cell with the objective to have the
least cost of transportation.

c) Vogel’s Approximation Method


An algorithm that finds an initial feasible solution to a transportation problem by considering
the “penalty cost” of not using the cheapest available rate.

PHASE 2 – Optimal Basic Solution

a) Modified Distribution Method (MODI)


The modified distribution method, is also known as MODI method or (u - v) method provides a
minimum cost solution to the transportation problems. MODI method is an improvement over
stepping stone method. This model studies the minimization of the cost of transporting a
commodity from a number of sources to several destinations. The supply at each source and the
demand at each destination are known. The objectives are to develop and review an integral
transportation schedule that meets all demands from the inventory at a minimum total
transportation cost.

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