Question

The optimality of a transportation problem is determined by the application of:

• A. North West corner method
• B. MODI method
• C. Vogel’s approximation method
• D. Least cost method

Hint:

Use Vogel’s approximation method to get an initial solution with potentially minimal cost, and then optimize with the MODI method.

Answer 1

The Correct Option is C

Step 1: Understanding Vogel’s approximation method.
Vogel’s approximation method (VAM) is a heuristic method used to find the initial feasible solution for transportation problems. The VAM minimizes the total transportation cost by selecting the most cost-effective routes based on the penalty of not using a particular route.
Step 2: Why Vogel’s approximation method?
VAM is preferred because it tends to produce a better initial solution compared to methods like North West corner or Least cost method. Once an initial solution is obtained using VAM, optimality can be checked using the MODI method.