UNIT III

Transportation Problem
A transportation problem is a type of optimization problem where the goal is to
find the most cost-effective way to distribute goods from several suppliers to
several destinations while meeting the supply and demand requirements.

Balanced Transportation Problem:

A balanced transportation problem is a type of transportation problem where the
total supply equals the total demand. This means that the amount of goods
available from all suppliers perfectly matches the amount needed at all
destinations, making it easier to find an optimal distribution solution.
Unbalanced Transportation Problem:
An unbalanced transportation problem is a type of transportation problem where
the total supply does not equal the total demand. This means there is either more
supply than demand or more demand than supply, requiring adjustments like
adding dummy suppliers or destinations to balance the problem and find a
solution.

Methods of Transportation Problem:

1. North-West Corner Rule
The North-West Corner Rule is a simple method used to find an initial solution to
a transportation problem. It starts by filling the shipping table from the top-left
corner (the north-west corner) and works its way across the rows and columns.
The idea Is to allocate as much as possible to each cell while meeting supply and
demand constraints until the entire table is filled.
2. Least Cell Corner Rule
The Least Cost Cell Rule is a method for solving a transportation problem by
starting with the cell that has the lowest transportation cost. The idea is to
allocate as much as possible to this cell first, then move to the next lowest cost
cell, and continue this process until all supplies and demands are met. This helps
in finding an initial solution that minimizes overall costs.
3. Vogel Approximation Method
The Vogel Approximation Method is a technique used to find a good initial
solution for a transportation problem. It works by calculating penalties for not
using the cheapest routes and then selecting the route with the highest penalty.
This method helps in allocating resources more effectively and often leads to a
better starting solution compared to simpler methods.

Advantages Of Transportation Problem:

1. Cost Efficiency: It helps find the most cost-effective way to transport goods,
saving money for businesses.
2. Clear Decision-Making: It provides a clear framework for deciding how to
distribute resources efficiently.
3. Simple to Use: The method is straightforward and can be applied to a
variety of industries, from shipping goods to allocating resources.
4. Optimizes Resources: It ensures that supply meets demand in the best way
possible, avoiding waste or shortages.

Limitations Of Transportation Problem:

1. Fixed Supply and Demand: It assumes that supply and demand are fixed
and known in advance, which might not be realistic in real-world situations.
2. Simplified Costs: It assumes transportation costs are linear and do not
change, ignoring factors like varying fuel prices, traffic, or delivery times.
3. Single Objective: It focuses only on minimizing costs and does not consider
other factors like delivery speed or customer satisfaction.
4. Limited Flexibility: The problem assumes all goods are the same and can be
shipped to any destination, which may not be true for different products or
locations.
Assignment Problem:
An assignment problem is a type of problem where the goal is to match tasks with
people or resources in the best way possible. Each task can only be assigned to
one person or resource, and the aim is to minimize costs or maximize efficiency in
these assignments.

Balanced Assignment Problem:

A balanced assignment problem is a type of assignment problem where the
number of tasks is equal to the number of people or resources available. This
means each task can be perfectly matched with one person or resource, making it
easier to find the most efficient way to complete all tasks.

Unbalanced Assignment Problem:

An unbalanced assignment problem is a type of assignment problem where the
number of tasks does not equal the number of people or resources available. This
imbalance means that either some tasks will be left unassigned or some
people/resources will have nothing to do. To solve this, adjustments like adding
dummy tasks or resources are made to balance the problem.

Restricted Assignment Problem:

A restricted assignment problem is a type of assignment problem where certain
tasks cannot be assigned to specific people or resources. These restrictions might
be due to skill limitations, preferences, or other constraints, making it more
challenging to find the best way to complete all tasks while following the rules.
Methods of Assignment Problem:
1. Hungarian Assignment Problem (HAM):
Hungarian assignment problem is a method used to find the most cost-effective
way to assign tasks to people or resources. It helps solve assignment problems by
finding the optimal matching that minimizes the total cost.

Limitations Of Assignment Problem:

1. Fixed Assignments: It assumes that each task must be assigned to exactly
one person or resource and vice versa, which might not be practical if tasks
or resources can vary in quantity.
2. No Flexibility: It does not account for changing conditions or preferences
over time, like if a task takes more or less time than expected.
3. Simple Costs: It typically only considers cost or efficiency, without
considering other factors like quality or employee satisfaction.
4. Restrictions: It may not handle complex restrictions or constraints very well,
such as specific qualifications required for tasks.

Advantages Of Assignment Problem:

1. Efficiency: It helps find the most efficient way to match tasks with people or
resources, minimizing costs and maximizing productivity.
2. Clear Solutions: It provides a straightforward method for assigning tasks,
making decision-making easier and more organized.
3. Optimal Matching: It ensures that every task is assigned to the best
possible person or resource based on the criteria set, leading to better
overall performance.
4. Versatile Applications: It can be used in various areas, such as scheduling,
job assignments, and resource allocation, to improve operations.