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TP VAM Solved Examples

The Vogel's approximation method is a heuristic for solving transportation problems that takes costs into account. It involves 5 steps: 1) calculating differences between lowest costs, 2) identifying highest difference, 3) allocating to lowest cost in that row/column, 4) stopping if complete or returning to step 2. The method usually yields an optimal or near-optimal starting solution, with one study finding an optimum 80% of the time.

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66 views

TP VAM Solved Examples

The Vogel's approximation method is a heuristic for solving transportation problems that takes costs into account. It involves 5 steps: 1) calculating differences between lowest costs, 2) identifying highest difference, 3) allocating to lowest cost in that row/column, 4) stopping if complete or returning to step 2. The method usually yields an optimal or near-optimal starting solution, with one study finding an optimum 80% of the time.

Uploaded by

Anik Guin
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Vogel’s approximation method:

• This method also takes costs into account in allocation. Five steps are
involved in applying this heuristic:
• Step 1: Determine the difference between the lowest two cells in all rows and
columns, including dummies.

• Step 2: Identify the row or column with the largest difference. Ties may be
broken arbitrarily.

• Step 3: Allocate as much as possible to the lowest-cost cell in the row or


column with the highest difference. If two or more differences are equal,
allocate as much as possible to the lowest-cost cell in these rows or columns.

• Step 4: Stop the process if all row and column requirements are met. If not,
go to the next step.

• Step 5: Recalculate the differences between the two lowest cells remaining in
all rows and columns. Any row and column with zero supply or demand
should not be used in calculating further differences.

Then go to Step 2. The Vogel's approximation method (VAM) usually produces


an optimal or near- optimal starting solution.

One study found that VAM yields an optimum solution in 80 percent of the
sample problems tested.

Example 1 : Vogel Approximation Method

Consider the transportation problem presented in the following table:

Destination
Origin 1 2 3 4 Supply
1 20 22 17 4 120
2 24 37 9 7 70
3 32 37 20 15 50
Demand 60 40 30 110 240

Solution.

Calculating penalty for table 1

17 - 4 = 13, 9 - 7 = 2, 20 - 15 = 5
24 - 20 = 4, 37 - 22 = 15, 17 - 9 = 8, 7 - 4 = 3
Table 1

Destination
Origin 1 2 3 4 Supply Penalty
1 20 17 4 120  80 13
2 24 37 9 7 70 2
3 32 37 20 15 50 5
Demand 60 40 30 110 240
Penalty 4 15 8 3

The highest penalty occurs in the second column. The minimum cij in this column is c12 (i.e.,
22). So x12 = 40 and the second column is eliminated. The new reduced matrix is shown below:

Now again calculate the penalty.

Table 2

Origin 1 3 4 Supply Penalty


1 20 17 80 13
2 24 9 7 70 2
3 32 20 15 50 5
Demand 60 30 110
Penalty 4 8 3

The highest penalty occurs in the first row. The minimum cij in this row is c14 (i.e., 4). So x14 = 80
and the first row is eliminated. The new reduced matrix is shown below:

Table 3

Origin 1 3 4 Supply Penalty


2 24 7 70 2
3 32 20 15 50 5
Demand 60 30 30
Penalty 8 11 8

The highest penalty occurs in the second column. The minimum cij in this column is c23 (i.e., 9).
So x23 = 30 and the second column is eliminated. The reduced matrix is given in the following
table.

Table 4

Origin 1 4 Supply Penalty


2 40 17
3 15 50 17
Demand 60 30
Penalty 8 8

The following table shows the computation of penalty for various rows and columns.

Final table of Vogel Approximation Method

Destination
Origin 1 2 3 4 Supply Penalty
1 20 17 120 13 13 - - - -
2 37 70 2 2 2 17 24 24
3 37 20 15 50 5 5 5 17 32 -
Demand 60 40 30 110 240
4 15 8 3
4 - 8 3
8 - 11 8
Penalty
8 - - 8
8 - - -
24 - - -

Initial basic feasible solution

22 X 40 + 4 X 80 + 24 X 10 + 9 X 30 + 7 X 30 + 32 X 50 = 3520 units.

Example 2 : Vogel Approximation Method

Consider the transportation problem presented in the following table:

Destination

Origin 1 2 3 Supply
1 2 7 4 5

2 3 3 1 8

3 5 4 7 7

4 1 6 2 14

Demand 7 9 18 34

Solution.

Table 1

Destination

Origin 1 2 3 Supply Penalty

1 7 4 5 2

2 3 3 1 8 2

3 5 4 7 7 1

4 1 6 2 14 1

Demand 72 9 18 34

Penalty 1 1 1

The highest penalty occurs in the first row. The minimum cij in this row is c11 (i.e., 2). Hence, x11
= 5 and the first row is eliminated.

Now again calculate the penalty. The following table shows the computation of penalty for
various rows and columns.

Final table

Destination

Origin 1 2 3 Supply Penalty

1 7 4 5 2 - - - - -

2 3 8 2 2 2 2 3 3
3 5 7 7 1 1 3 3 4 -

4 6 14 1 1 4 - - -

Demand 7 9 18 34

1 1 1

2 1 1

- 1 1
Penalty
- 1 6

- 1 -

- 3 -

Initial basic feasible solution

5 X 2 + 2 X 3 + 6 X 1 + 7 X 4 + 2 X 1 + 12 X 2 = 76 units.

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