To calculate the optimum cost element of transportation using the Vogel's Approximation Method (VAM), we first need to set up the transportation table.
From the image, we can identify the following:
- Costs (Cij):
- Row 1: 4, 1, 2, 6
- Row 2: 8, 8, 3, 2
- Row 3: 5, 9, 8, 7
- Demand (Dj):
- D1=1300
- D2=1000
- D3=1000
- D4=900
- Total Demand = 1300+1000+1000+900=4200
- Supply (Si):
- S2=1400
- S3=1400
- The supply for S1 is missing. Since the total demand is 4200, we assume the total supply must also be 4200 for a balanced problem.
- Therefore, S1=4200−(1400+1400)=4200−2800=1400.
The balanced transportation table is:
From/ToS1S2S3Demand(Dj)D1(1300)4851300D2(1000)1891000D3(1000)2381000D4(900)627900Supply(Si)1400140014004200
We will now apply the VAM steps.
Step 1: Calculate initial penalties.
Calculate the difference between the two lowest costs for each row and column.
From/ToS1S2S3Demand(Dj)ColPenaltyD1(1300)48513005−4=1D2(1000)18910008−1=7D3(1000)23810003−2=1D4(900)6279006−2=4Supply(Si)140014001400RowPenalty2−1=13−2=17−5=2
Step 2: Make the first allocation.
The highest penalty is 7 (Column D2). In D2, the minimum cost is C12=1.
Allocate min(S1,D2)=min(1400,1000)=1000 units to cell (S1,D2).
Update supply and demand: S1=1400−1000=400, D2=1000−1000=0. Column D2 is satisfied.
Step 3: Recalculate penalties and make the second allocation.
From/ToS1S2S3Demand(Dj)ColPenaltyD1(1300)48513005−4=1D3(1000)23810003−2=1D4(900)6279006−2=4Supply(Si)40014001400RowPenalty4−2=23−2=17−5=2
The highest penalty is 4 (Column D4). In D4, the minimum cost is C24=2.
Allocate min(S2,D4)=min(1400,900)=900 units to cell (S2,D4).
Update supply and demand: S2=1400−900=500, D4=900−900=0. Column D4 is satisfied.
Step 4: Recalculate penalties and make the third allocation.
From/ToS1S2S3Demand(Dj)ColPenaltyD1(1300)48513005−4=1D3(1000)23810003−2=1Supply(Si)4005001400RowPenalty4−2=28−3=58−5=3
The highest penalty is 5 (Row S2). In S2, the minimum cost is C23=3.
Allocate min(S2,D3)=min(500,1000)=500 units to cell (S2,D3).
Update supply and demand: S2=500−500=0, D3=1000−500=500. Row S2 is satisfied.
Step 5: Recalculate penalties and make the fourth allocation.
From/ToS1S3Demand(Dj)ColPenaltyD1(1300)4513005−4=1D3(500)285008−2=6Supply(Si)4001400RowPenalty4−2=28−5=3
The highest penalty is 6 (Column D3). In D3, the minimum cost is C13=2.
Allocate min(S1,D3)=min(400,500)=400 units to cell (S1,D3).
Update supply and demand: S1=400−400=0, D3=500−400=100. Row S1 is satisfied.
Step 6: Make the final allocations.
Only row S3 and columns D1, D3 remain.
From/ToS3Demand(Dj)D1(1300)51300D3(100)8100Supply(Si)1400
Allocate remaining demand to S3.
Allocate min(S3,D1)=min(1400,1300)=1300 units to cell (S3,D1).
Update supply and demand: S3=1400−1300=100, D1=1300−1300=0.
Allocate min(S3,D3)=min(100,100)=100 units to cell (S3,D3).
Update supply and demand: S3=100−100=0, D3=100−100=0.
All supply and demand are met.
Step 7: Calculate the total transportation cost.
The allocations are:
- X12=1000 units at cost C12=1
- X24=900 units at cost C24=2
- X23=500 units at cost C23=3
- X13=400 units at cost C13=2
- X31=1300 units at cost C31=5
- X33=100 units at cost C33=8
Total Cost = (1000×1)+(900×2)+(500×3)+(400×2)+(1300×5)+(100×8)
Total Cost = 1000+1800+1500+800+6500+800
Total Cost = 12400
The optimum cost element of transportation using VAM is ∗12400∗.
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