TOTAL OPPORTUNITY COST MATRIX – (TOCM - ASM) METHOD IN OBTAINING INITIAL BASIC FEASIBLE SOLUTION OF TRANSPORTATION PROBLEMS

Abstract

The transportation problem is a problem regarding the process of distributing products from various sources to various destinations to minimize distribution costs incurred which can meet the required supply and demand. This thesis will discuss about solving transportation problems using the Total Opportunity Cost Matrix - ASM method. The TOCM - ASM method is a combination of two methods, namely the TOCM method and the ASM method. This method uses TOCM as the initial transport table and is followed by the ASM method. TOCM is defined as the sum of the Row Opportunity Cost Matrix (ROCM) and Column Opportunity Cost Matrix (COCM). ROCM is generated by subtracting each cost element with the lowest cost in a row and COCM is generated by subtracting each cost element with the lowest cost in a row. Then the TOCM table is continued by using the ASM method to obtain an initial feasible solution. The TOCM - ASM method can solve both balanced and unbalanced transportation problems. The initial feasible solution generated by the TOCM - ASM method will be optimized by the MODI method. Keyword: Transportation Problem, IBFS, Optimal Solution, TOCM - ASM, MODI method