Monday, May 4, 2020

Vogel's Approximation Method(VAM) | Transportation Problem

Definition- Vogel's Approximation method(VAM) or Penalty Method is a heuristic method which is used to calculate initial basic feasible solution(ibfs) to the transportation problem. It doesn't provide us the optimal solution. VAM is an improved version of Least-cost method. The ibfs obtained from Vogel's approximation method is better as compared to other methods. I am optimistic that following video will help you to solve VAM method easily.







Procedure of VAM:

Step 1- Calculate penalties for each row and column. 
Penalty= 2nd Minimum-Minimum number

Step 2- Select maximum penalty and allocate as much as possible to the minimum cost for that penalty.

Step 3- In case of tie among the highest penalties, select row or column having minimum cost.

Step 4- In case of tie in the minimum cost also, select cell which can have maximum allocation.

Step 5- If there is tie in maximum allocation also, select the cell arbitrarily for allocation.


Click here to download notes

1 comment:

  1. Well done u can do a good and easy ..way for provide knowledge and solutions
    Keep it up

    ReplyDelete

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