TRANSPORTATION

PROBLEM
Transportation problem is a special type of linear programming
problem where the objective is to minimize the cost of distributing a
product from a number of sources or origins to a number of
destinations.
 Question
• A mobile phone manufacturing company has three branches located in three different regions , say Chennai
, Bangalore and Mumbai. The company has to transport mobile phones to three destinations , say
Coimbatore , Pune and Delhi. The availability from Chennai , Bangalore and Mumbai is 40 , 60 and 70
units. The demand at Coimbatore , Pune and Delhi are 70 , 40 and 60 respectively. Solve the problem using
all three methods :
DESTINATIONS
Chennai Bangalore Mumbai Supply
Coimbatore 4 5 1 40
Pune 3 4 3 60
SOURCES Delhi 6 2 8 70
Demand 70 40 60

HENCE IT IS BALANCED PROBLEM

 NORTH-WEST
CORNER
METHOD
Chennai Bangalore Mumbai Supply
Coimbator 40 4 5 1 40 0
e
Pune 30 3 30 4 3 60 30 0

Delhi 6 10 2 60 8 70 60 0
Demand 70 40 60
30 10 60
0 0 0

Transportation Cost = (4*40) + (3*30) + (4*30) + (2*10) + (8*60)

= RS. 870.
 VOGEL’S APPOXIMATION METHOD
Chennai Bangalore Mumbai Supply
Coimbator 4 5 40 1 40 (3) (3)
0
e
Pune 40 3 4 20 3 60 40 0 (0) (0) (0) 3

Delhi 30 6 40 2 8 7030 0 (4) (2) (2) 6 6

30 0 0
Demand 70 40 60 20 0

(1) (2) (2)

Transportation Cost = (1x40) + (3x40) + (3x20) +
(1) (2)
(6x30) + (2x40)
(3) (5)
=RS.480.
(3)

6
 LEAST- COST METHOD
Chennai Bangalore Mumbai Supply
Coimbatore 4 5 40 1 40 0

Pune 60 3 4 3 60 0

Delhi 10 6 40 2 20 8 70 30 0

Demand 70 10 0 40 0 60 20 0

Transportation Cost = (1x40) + (3x60) + (6x10) + (2x40) + (8x20)

=RS.520.