Final Project
Final Project
Final Project
PROBLEM
MINIMUM COST METHOD
FIRST, LET’S DEFINE
“TRANSPORTATION PROBLEM”
Many examples from other disciplines may be used to explain the transportation
challenge. One application is the efficient movement of troops from bases to
combat sites. Another consideration is the best assignment of agents or workers to
various occupations or roles. Moving items from various factories to different
warehouse sites, or from warehouses to storefronts, is by far the most typical use.
BASIC FORM OF
TRANSPORTATION
PROBLEM
TYPES OF TRANSPORTATION
PROBLEMS
Definition: The Least Cost Method is another method used to obtain the initial
feasible solution for the transportation problem.
The Least Cost Method is considered to produce more optimal results than the
North-west Corner because it considers the shipping cost while making the
allocation, whereas the North-West corner method only considers the availability and
supply requirement and allocation begin with the extreme left corner, irrespective of
the shipping cost. over the higher-cost cell with the objective to have the least cost of
transportation.
LET’S SAY,
A mobile phone manufacturing company has three branches located in three different
regions, say Jaipur, Udaipur and Mumbai.
The company has to transport mobile phones to three destinations, say Kanpur, Pune
and Delhi. The availability from Jaipur, Udaipur and Mumbai is 40, 60 and 70 units
respectively. The demand at Kanpur, Pune and Delhi are 70, 40 and 60 respectively.
The transportation cost is shown in the matrix below (in Rs). Use the Least Cost
method to find a basic feasible solution (BFS).
MINIMUM
COST METHOD
STEPS
Step 1: Balance the problem
Balance the problem meaning we need to
check that if;
Σ Supply=Σ Demand
I f this holds true, then we will consider
the given problem as a balanced
problem.
Now, what if it’s not balanced?
i.e., Σ Supply(not) =Σ Demand
If such a condition occurs, then we have
to add a dummy source or market;
whichever makes the problem balanced.
MINIMUM
COST METHOD
STEPS
Step 2: Select the lowest cost from the entire matrix and
allocate the minimum of supply or demand.
Checking out the first row and not the last column,
because we are allocating 40 in the cell for supply, as
it is minimum.
t=sum(y);
v=sum(z,2);
if t~=v
end
Totalcost=0;
y=size(x);
while y>0
[NUM]=min(x(:));
[A,B]=ind2sub(size(x),find(x==NUM));
A=A(1,1);
B=B(1,1);
CODE
//if we have same minimum
//find min,row and column
t=y(A);
//the supply to take
v=z(B);
//the demand to take
g=t-v;
end
if g<0
//find g is negative change to positive
g=-g;
end
CODE
if t<v then
y(A)=y(A)-t;
z(B)=z(B)-t;
x(A,:)=[];
y(A,:)=[];
totalcost=totalcost+([NUM]*t);
end
y=size(x);
disp(totalcost,'totalcost')
OUTPUT
M1 M2 M3
P1 50 300 0
P2 250 0 300
RESULT SUMMARY WITH
EXPERIENCE
Although, writing and analyzing the code, we came face to face with many errors
and unwanted output types. With the help of many student blogs and websites that
were dictated on educational purposes, understanding and having an idea on this
method operation were beneficial for us.
https://towardsdatascience.com/operations-research-in-r-
transportation-problem-1df59961b2ad
https://www.educationlessons.co.in/notes/least-cost-met
hod/
SOURCES https://study.com/academy/lesson/using-the-minimum-c
ost-method-to-solve-transportation-problems.html#:~:te
xt=Using%20the%20minimum%20cost%20method,the
%20lowest%20possible%20transportation%20costs
.