Step2:Ifb1 a1wemovedownverticallytothesecondrowandmakethe

secondallocationofmagnitudex21=min(a2,b1x1)incell(2,1)
Ifb1 a1,Wemoverighthorizontallytothesecondcolumnandmakethe
secondallocationofmagnitudex12=min(a2,x11b2)inthecell(1,2)
Ifb1=a1,thereisatieforthesecondallocationonecanmakethesecond
allocationofmagnitude.
X12=min(a1,a1,b2)=ointhecell(1,2)
(or)X12=min(a2,b1b1)=ointhecell(2,1)
Step3:Repeatsteps1&2movingdowntowardsthelowercornerofthe
transportationtableuntilalltherimrequirementsarestatisfied.
Leastcostmethodtalesintoaccounttheminimumunitcostandcanbe
summarizedasfollows.
Step1:Determinethesmallestcostinthecostmatrixofthetransportationtable
letbecijAllocatexij=min(ai,bj)inthecell(i,j)
Step:Ifxij=ajcrossofftheithrowofthetransportationtableanddecreasebj
byaigotostep3.
Ifxij=bjcrossoffthejthcolumnofthetransportationtableanddecreaseaibybj
gotostep3
Ifxij=ai=bjcrossoffeithertheithroworjthcolumnbutnotboth
Step3:Repeatsteps1and2fortheresultingreducedtransportationtableuntil
alltherimrequirementsarestatisfied.Whenevertheminimumcostisnot
unique,makeanarbitrarychoiceamongtheminima.
3VogelsApproximationMethod(VAM)
TheVogelsApproximationmethodtakeintoaccountnotonlytheleast
costcijbutalsothecoststhejustexceedcij.Thestepsofthemethodaregiven
below.
Step1:Foreachrowofthetransportationtableidentifythesmallestandthe
nexttosmallestcostsDeterminethedifferencebetweenthemforeachrow.

Displaythemalongsidethetransportationtablebyenclosingthemin
parenthesisagainsttherespectiverows,similarly,computethedifferencesfor
eachcolumn.
Step2:IdentifytheroworcolumnwiththeLargestdifferencesamongallthe
rowsandcolumns.Ifatieoccurs,useanyarbitrarytiebreakingchoice.Letthe
greatestdifferencecorrespondtoithrowandletcijbethesmallestcostintheith
row.Allocatethemaximumfeasibleamountxij=min(ai,bj)the(i,j)celland
crossofftheithroworthejobcolumnintheusualmanner.
Step3:Recomputedthecolumnandrowdifferencesforthereduced
transportationtableandgotostep2.Repeattheprocedureuntilalltherim
requirementarestatisfied.
PROBLEMS:
1. NorthWestcornerMethod(NWC)
1.Obtainaninitialbasicfeasiblesolutiontothefollowingtransportation
problem.Northwestcornerrule.

Availabl

11

13

17

14

250

16

18

14

10

300

21

24

13

10

400

Requiremen

200

225

275

250

Solution:

ai

bj

=950

TheGivenProblemis
D

Availabl

11

13

17

14

250

16

18

14

10

300

21

24

13

10

Requiremen

200

225

275

250

400

Step1:
Available

Requiremen

13 13
200
18
18

17

14

250

14

10

300

21

24

13

10

400

200

225

275

250

250 200 =
50

Step2:

Available

Requiremen

13 17
50
18
14

14

50

10

300

24

13

10

400

225

275

250

225 50 =
175

Step3:
Available

Requiremen

Step4:

18 14
75
24
13

10

300

10

400

175

250

275

300 175
=125 175

14 10
125
13
10
275

125
400

250

300 175
=125 175

Step5:

13 10
150
150
250

400

400 150
=250 175

Step6:

10 250
250
250

Theinitialbasicfeasiblesolutionis

13 13
200 50
18
18
175
21
24

17

14

14
125
13
150

10

Positiveindependentallocationis
m+n1

=4+31=6

TheSolutionisnondegeneratebasicfeasible
Theinitialtransportationcostis

10
250

Cost = (11x200)+(13x50)+(18x175)+(14x125)+
(13x150)+(10x250)

Cost= 2,200+650+3,150+1,750+1,950+2500

Cost=12,200//

LeastcostMethod(LCM)Problem:
1) Findtheinitialbasicfeasiblesolutionforthefollowingtransportation
problembyleastcostmethod.

To
from

Demand

Supply

30

50

20

20

40

30

10

Solution:Solution:

ai

bj

=100

Thegivenproblemis
Supply

To
from

Demand

30

50

20

20

40

30

10

Step1:

1 2
20
3
3

30

50

20

20

40

30

10

30 20 =
10

Step2:
Available

2 1 4

10
3
2
1

10

20

40

30

10

50

30 10 =
20
Step3:

Available

1
10
9

40

20

10

50
20

50 10 =
40

Step4:

3
2

2
20
5

40

20

40
20

40 20 = 20

Step5:

2
20
20

20

3
20
20

20

20

Step6:

Theinitialbasicfeasiblesolutionis

40 20 = 20

1 2
20
3
3
20
4
2
20

1
10
2
20
5

Positiveindependentallocation
m+n1=4+3=6
TheSolutionisnondegeneratebasicfeasible.
Theinitialtransportationcostis
Cost

4
1
10
9