What is lowest cost entry method?

What is lowest cost entry method?

Definition: The Least Cost Method is another method used to obtain the initial feasible solution for the transportation problem. Here, the allocation begins with the cell which has the minimum cost. The lower cost cells are chosen over the higher-cost cell with the objective to have the least cost of transportation.

Is Modi method and UV method same?

The modified distribution method, is also known as MODI method or (u – v) method provides a minimum cost solution to the transportation problems. MODI method is an improvement over stepping stone method.

Why Vogel’s approximation method is best?

VAM is a better method than the method of Least Cost and North West Corner in searching for feasible baseline solutions early. Allocate as many variables as possible with the smallest unit cost in the selected row or column. Adjust the supply and demand, and remove the rows or columns that have been fulfilled.

What is the formula for UI and VJ values?

There is a separate formula to find ui and vj, ui + vj = Cij where Cij is the cost value only for the allocated cell.

What is LCM & VAM?

North West Corner Method (NWCM) , Least Cost Method (LCM) and Vogel’s Approximation Method (VAM) are the classical methods for solving transportation problems and are well discussed in all the operation research books. NWCM was introduced by Charnes in 1953, VAM was introduced by Reinfeld and Vogel in1958, LCM.

Who invented least cost method?

The first systematic procedure in solving the TP was developed by F.L. Hitchcock [1] in 1941 and referred as Least Cost Method (LCM), which consists in allocating as much as possible in the lowest cost cell of the TP in making allocation in every stage.

What is the purpose of Modi method?

MODI METHOD The MODI (modified distribution) method allows us to compute improvement indices quickly for each unused square without drawing all of the closed paths. Because of this, it can often provide considerable time savings over other methods for solving transportation problems.

How is Modi method calculated?

Steps in Modified Distribution Method (MODI)

1. Determine an initial basic feasible solution using any one of the three methods given below:
2. Determine the values of dual variables, ui and vj, using ui + vj = cij
3. Compute the opportunity cost using cij – ( ui + vj ).
4. Check the sign of each opportunity cost.

How can least cost method be used in transportation problem?

Hence, the various steps involved in this method are as follows: Step 1: Find the cell with the least (minimum) cost in the transportation table. Step 2: Allocate the maximum feasible quantity to this cell considering the supply as well as demand. Step 3: Eliminate the row or column where an allocation is made.

Which method gives best approximate results?

Vogel’s Approximation Method (VAM) usually provides better result in comparison to othet methods for finding initial basic feasible solution. Vogel’s Approximation Method gives better result with less iterations.

What is northwest corner method?

Definition: The North-West Corner Rule is a method adopted to compute the initial feasible solution of the transportation problem. The name North-west corner is given to this method because the basic variables are selected from the extreme left corner. The transportation costs are also given in the matrix.

What is northwest corner cell method?

The North West corner rule is a method for computing a basic feasible solution of a transportation problem, where the basic variables are selected from the North – West corner ( i.e., top left corner ). The standard instructions for a transportation model are paraphrased below.