The transportation problem is to transport various amount of single object that are initially stored at various origins, to different destinations in such a way that the total transportation cost is minimum.it is a special class of LPP and may be solved by simplex method. Transportation problem always posses a feasible solution.It has a unique solution when cell evaluation matrix has only positive values.
various methods that can be used for obtaining an initial basic solution for transportation problem
1. North west corner method
2. Row minimum method
3. Column minimum method
4. Least cost method
5. Vogal approximation method.
steps involved in vogal approximation method (VAM).
Step.1. For each row of the transportation table identify the smallest and next to smallest cost. Determine the difference between them for each row. These are called penalities.’ Similarly compute these penalities for each column.
Setp. 2. Identify the row or column with the largest penalty and allocate as much as possible within the restrictions of the rim conditions to the lowest cost cell in the row or column selected.
Setp. 3. Cross out of the row or column completely satisfied by the allocation.
Setp. 4. Repeat steps 1 to 3 untill all assignment have been made.
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