2017 |
Volume 6 |
Issue Issue 3
Cost Optimisation through Modified Vogels Approximation Method for Unbalanced Transportation Problem
1.
Pearly Saira Chacko
– Assistant Professor, Dept. Of Management Studies, Toc H Inst. Of Science & Tech., Kerala, India.
2.
Hareesh N. Ramanathan
– Assistant Professor, Dept. Of Management Studies, Toc H Inst. Of Science & Tech., Kerala, India.
3.
Sherin Saji
– Assistant Professor, Dept. Of Management Studies, Toc H Inst. Of Science & Tech., Kerala, India.
Received
16-Sep-2017
|
Accepted
-
|
Published
16-Sep-2017
|
Abstract
For any manufacturing firm, transportation cost could be a considerable part of the logistics cost. This along with the mounting
fuel cost is ultimately passed on to the customers. With rising competition, firms are forced to find out methods of optimising
the transportation cost thereby reducing the total cost. There are many methods available in solving a transportation method.
However, the traditional Vogels approximation method has many drawbacks when dealing with situations where the supply and
demand are unbalanced. This study examines the effectiveness of using the modified Vogels method when compared to the
traditional approach with the help of a case study. The study found that the use of the proposed method will bring in considerable
cost reduction in transportation thereby increasing the profitability of the firm. Moreover the proposed method is easy to implement
and will be highly beneficial for the decision makers.
Keywords Transportation Problem, Vogels Approximation Method, Initial Solution, Modified VAM
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