Syllabus

• Unit -1: Introduction, Linear Programming

Problems(LPP)
• Unit -2: Transportation problems
• Unit -3: Assignment problems
• Unit -4: Project Management by using PERT
and CPM techniques
• Unit -5: Job sequencing and Queuing theory
 Linear Programming Problems (LPP)
• LPP is a mathematical technique used for
determining optimum allocation of resources
and finding a particular objective when
alternative resources are available so as to
minimise the total cost or maximise the total
profit
 Transportation problems
• Transportation problems are used to find out
the quantity of goods to be transported from
various origins to various destinations so as to
minimise the total transportation cost
 Assignment problems
• Assignment problems are used to find out the
best pair of assignment of jobs to the
machines so as to minimise the total cost of
assignment by using Hungarian Technique
 Project Management by using PERT
and CPM Techniques
• Project management is used to plan and
execute a project undertaken effectively so as
to complete the project successfully within
the stipulated duration and within the
resources availability
 Job Sequencing and Queuing theory
• Job sequencing is used to find out the
appropriate sequence of jobs to be performed
on finite number machines so as to minimise
the total elapsed time
• Queuing theory is used to plan and use
effectively queue formation in an organisation
to balance both the supply and demand
 Transportation Problems
• Transportation problems are used to find out
the quantity of goods to be transported from
various origins to various destinations so as to
minimise the total transportation cost
 Basic terms used in TP
• Origins
• Destinations
• Supply capacity (of origins)
• Demand requirements (of destinations)
• Balanced problem
• Allocations
• Feasible solution
• Optimal Solution
 Nature of TP
Destinations

Supply Capacity
P Q R

A C11 C12 C13 s1

Origins
B C21 C22 C33 s2

C C31 C32 C33 s3

D C41 C42 C43 s4

Demand D1 D2 D3
Requirements
 Definitions of Basic terms used in TP
• Origins: the place where goods are produced or originated
• Destinations: the place where goods are consumed
• Supply capacity (of origins): the capacity of the plant to
produce and supply to the customers in market
• Demand requirements (of destinations): the requirements of
the customers in the market
• Balanced problem: the problem is said to be balanced when
the sum of supply capacities is equal to the the sum of
demand requirements
• Allocations : the quantity of the goods to be transported
from a particular origin to a particular destination
• Feasible solution: the solution or set of allocations put
together must satisfy all supply capacities and demand
requirements of all origins and destinations respectively
• Optimal Solution: the best possible solution which minimises
the total cost or maximises the total profit. The feasible
solution may be optimal or may not be an optimal solution
 Basic steps of TP
There are two basic steps to obtain optimal
solution
• IBFS (Initial Basic Feasible Solution)
• Optimal Solution
 IBFS Techniques
• North West Corner Method (NWC)
• Least Cost Method (LCM) or
Matrix Minimum Method (MMM)
• Vogel's Approximation Method (VAM) or
Unit Cost Penalty Method (UCP)
• Row Minima Method (RMM)
• Column Minima Method (CMM)
 IBFS of TP
• All three inputs (unit transportation cost matrix,
supply capacity of origins and demand
requirements of destinations) must be given to
obtain IBFS for a given problem
• The given problem must be a balanced
transportation problem (sum of supplies must be
equal to sum of demands). This is the first thing
we need to check and ensure that the problem is
balanced and then solve the problem
 North West Corner Method (NWC)
• Check whether the problem is balanced or not
• Once its ensured that the problem is balanced, choose
the north west corner (upper left corner) cell in the given
unit transportation cost matrix and do the first allocation
by checking the corresponding supply and demand
• Allocation value will be the minimum value of both net
supply and net demand
• After every allocation either supply or demand will be
satisfied
• Strike off the row or column whichever is satisfied (strike
off the row if supply is satisfied and strike off the column
if demand is satisfied)
• Consider the remaining matrix and repeat the same
procedure again and again till you get all the allocations
• Multiply the allocations with respective cost and add all
those values to get total transportation cost.
North West Corner Method (NWC)
Total Transportation cost
= 8x10+ 2x10 + 5x7+5x9+4x7+4x10
= Rs. 248

This is feasible solution only, it may be optimal

solution or may not be an optimal solution
Example
Example solution
Total Transportation cost
=140x16+10x18+110x19+50x14+40x15+50x10
= Rs. 6310
Least Cost Method (LCM)
Total Transportation cost
=2x4+2x2+1x1+2x3+3x6
= Rs. 38
Vogel’s Approximation Method (VAM)
Total Transportation cost
=5x19+2x10+7x40+2x60+8x8+10x20
= Rs. 779