Transportation - Dani Ki Costing - CA Final Video Lectures
Transportation - Dani Ki Costing - CA Final Video Lectures | Transportation - Dani Ki Costing - CA Final Video Lectures | Transportation - Dani Ki Costing - CA Final Video Lectures
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Dani
Ki Costing
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Final
Video Lectures
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Transportation
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Lecture
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Lecture
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Lecture
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Lecture
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Lecture
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The
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Transportation Problem
Transportation Problem helps in detecting the route at which the
transportation cost comes to minimum. The transportation pattern is decided by
solving transportation problems. To solve transportation problems, linear
equations are used. In solving the transportation problem the first step is to
find out the Initial Basic Feasible Solution. Different methods are used to
find out the Initial Basic Feasible Solution. Initial Basic Feasible Solution
is found out by allocation in rows and columns by apportioning most possible to
the first cell and then proceeding further to the following cell till the
quantity in the raw is finished. Let us have a precise look at some of the
methods of finding the Initial Basic Feasible Solution:
- North-West corner
Rule: In this method, first allocation is made from the cell in the upper
left corner.
- The Least cost
method: In the least cost method, the cell with lowest cost is first
selected and the maximum allocation possible is made.
- Vogel’s Approximation
Method (VAM): The Vogel’s Method is considered as best of all. The least
and next least costs are considered in this method.
After finding the Initial Basic Feasible Solution, Optimality test
is to be conducted. It is the test to check whether the Initial Basic Feasible
Solution found is optimal or not. If the same is not optimal then the
transportation problem is unbalanced. Balance of the Initial Basic Feasible
Solution is calculated the formula m+n-1, where ‘m’ stands for number of rows
and ‘n’ stand for number of columns. Number of allocations must be equal to the
figure derived by the given formula.
In case when the Initial Basic Feasible Solution is not optimal or
the problem is imbalanced then Degeneracy is created. To solve such problems with
degeneracy, the infinitesimally ‘e’ is allocated to make the problem balanced.
The reason behind solving such transportation problems is to select the best
transportation path and which will be profitable to company as it will incur
least cost amongst all other paths.
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