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VOGELS APPROXIMATION METHOD

PRESENTED BY: SIDDHARTH PANT 10MEU073 ME-B

CONTENTS
Introduction Understanding the VAM Steps for VAM Example

INTRODUCTION
Vogels Approximation Method is used for Transportation Problems Transportation Problems deal with shipping of products from supply centers to demand centers Objective is to get the minimum cost There are three methods to solve such cases:
North-West Corner Method (NWCM) Least Cost Method (LCM) Vogels Approximation Method (VAM)

UNDERSTANDING THE VAM

Vogels Approximation Method (VAM) is a method to solve the transportation problems It is also referred to as Penalty method Allocations are made on the basis of reduction in Opportunity Costs More preferred over NWCM or LCM

STEPS FOR VOGELS METHOD

Calculate penalties for each row and column by taking difference between smallest and next smallest cost in the same row/column Select the row/column with maximum penalty Allocate as much as possible in the cell with least cost Cross out the row/column in which the supply/demand diminishes to nil Follow the procedure until all the supply/demand get exhausted This gives the Initial Solution for the problem The feasible solution is found if m+n-1 rule is followed.

Example
D1 S1 S2 S3
19

D2
30

D3
50

D4
10

Supply 7 9 18 9 10 12

Row Penalties 9 20 20 40 20 50 40 20 -

5
70 30 40 60

2
7 2
20

40

70

10

Demand

5
21

8
22 -

7
10 10 10 10

14
10 10 10 50

34

Column Penalties

21 -

FINAL SOLUTION
In the mentioned example, n+m-1 rule is followed. Hence, this is a feasible solution OR Initial Solution is found. The solution is: 19*5+8*8+40*7+10*2+60*2+20*10 = 779 This is the case to get the minimum cost for fulfilling the demand by all the supply material.