Vogel's Approximation Method (VAM) for Transportation Problems
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Questions and Answers

The Vogel's Approximation Method (VAM) always guarantees an optimal solution to transportation problems.

False

If a transportation problem has more sources than destinations, it is considered unbalanced.

True

Degeneracy in transportation problems occurs when the number of allocations is greater than the number of sources plus the number of destinations minus one.

False

In an unbalanced transportation problem, the supply and demand quantities must be equal for each source and destination.

<p>False</p> Signup and view all the answers

In an unbalanced transportation problem, dummy sources or destinations are added to balance the total supply and demand.

<p>True</p> Signup and view all the answers

Degeneracy occurs in a transportation problem when the number of ____________ is less than the number of sources plus the number of destinations minus one.

<p>allocations</p> Signup and view all the answers

In transportation problems, the term "slack" refers to the difference between the ____________ and ____________ for each source and destination.

<p>supply,demand</p> Signup and view all the answers

In Vogel's Approximation Method (VAM), the penalty cost is calculated based on the difference between the ____________ transportation costs in each row and column.

<p>two lowest</p> Signup and view all the answers

The MODI method is used to improve the initial solution by determining the ____________ associated with each variable.

<p>marginal costs</p> Signup and view all the answers

In an unbalanced transportation problem, the total ____________ must equal the total ____________.

<p>supply,demand</p> Signup and view all the answers

Study Notes

Transportation Problems

  • The Vogel's Approximation Method (VAM) guarantees an optimal solution to transportation problems.
  • A transportation problem is considered unbalanced if it has more sources than destinations.

Degeneracy in Transportation Problems

  • Degeneracy occurs when the number of allocations is greater than the number of sources plus the number of destinations minus one.
  • Degeneracy occurs when the number of allocations is less than the number of sources plus the number of destinations minus one.

Characteristics of Unbalanced Transportation Problems

  • In an unbalanced transportation problem, the supply and demand quantities must be equal for each source and destination.
  • Dummy sources or destinations are added to balance the total supply and demand in unbalanced transportation problems.

Key Terms

  • "Slack" refers to the difference between the capacity and requirement for each source and destination.
  • Penalty cost in VAM is calculated based on the difference between the highest and lowest transportation costs in each row and column.

MODI Method

  • The MODI method is used to improve the initial solution by determining the opportunity cost associated with each variable.

Unbalanced Transportation Problem Balance

  • In an unbalanced transportation problem, the total supply must equal the total demand.

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Learn about Vogel's Approximation Method (VAM) which guarantees an optimal solution for transportation problems. Understand how to apply this method in solving transportation optimization challenges.

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