THE METHOD OF COST MINIMIZATION APPROACH IN DETERMINING THE INITIAL BASIC FEASIBLE SOLUTION OF TRANSPORTATION PROBLEMS

Abstract

Transportation method is a problem associated with the distribution of similar goods from several sources to several destinations with regard to the factor of shipping costs, the amount of demand and the number of offers. The aim is to minimize total shipping costs so as to maximize profits. Settlement of transportation problems is divided into two stages, the first stage is to determine the initial basic feasible solution and second is to find the optimal solution. The Cost Minimization Approach (CMA) method is a method for determining initial basic feasible solutions. This CMA method looks for the difference in rows and columns which is then calculated as a penalty between the two, then the smallest cost along the largest distribution index is searched so that all requests and offers are allocated. The initial feasible solution obtained from the CMA method is then optimized using the Modified Distribution (MODI) method. Keywords : Cost minimization approach method, initial basic feasible solution, transportation problems