IVAM (IMPROVED VOGEL’S APPROXIMATION METHOD) AND MODI METHOD TO OBTAIN AN OPTIMAL SOLUTION IN THE TRANSPORTATION PROBLEM

Abstract

Transportation problem is a problem of distributing a product from several sources to several destinations to minimize the shipping cost of distributing a product. In general, solving transportation problem requires two stages, which is finding an initial feasible solution then finding optimal solution. J. Nahar, E. Rusyaman, S. Putridid some research for a new alternative to determining the initial feasible solution in a simple way, which is Improved Vogel’s Approximation Method (IVAM) and then optimized using MODI Method. The principle of the IVAM method is to apply the TOC (Total Opportunity Cost) matrix and and choose the three penalty costs with the largest value and then allocate the product to the cell that has the lowest distribution cost in the three rows or columns with the largest penalty costs selected. In allocating products into the row or column with the largest penalty fee selected, first allocate the product into the row or column with the largest penalty cost among the three selected penalty costs and allocate it according to the minimum demand and supply in the row or column the chosen. In four examples of balanced and unbalanced transportation problems, the IVAM Method will immediately provide the optimal solution Keyword: Transportation Problem, IVAM Method, MODI Method, Optimal Solution