Understanding Vogel's Approximation Method

The video tutorial explains Vogel's Approximation Method for solving transportation problems. It begins by checking if the problem is balanced and of minimization type. The method involves calculating penalties for rows and columns, identifying the maximum penalty, and allocating supply based on minimum cost. The process is repeated until all demands are met, and the final allocations are made. The tutorial concludes with calculating the total transportation cost.

What is the first step in solving a transportation problem using Vogel's Approximation Method?

• Check if the problem is balanced

• Calculate the total cost

• Find the maximum penalty

• Allocate supplies randomly

Why is the transportation problem considered a minimization problem?

• Because it involves maximizing profits

• Because it uses penalties

• Because it is associated with minimizing costs

• Because it balances supply and demand

What is the purpose of calculating penalties in Vogel's Approximation Method?

• To identify the most significant cost difference

• To determine the least cost path

• To find the maximum supply

• To balance the demand

How is the penalty for a row or column determined?

• By multiplying the two lowest costs

• By dividing the highest cost by the lowest cost

• By subtracting the two lowest costs

• By adding the two highest costs

What is done after identifying the maximum penalty in a column?

• Increase the demand

• Recalculate all penalties

• Find the minimum cost in that column

• Allocate the maximum supply

What happens when a supply or demand is completely satisfied?

• The total cost is updated

• The problem is considered solved

• The corresponding row or column is removed from calculations

• The penalties are recalculated

What is the next step after recalculating penalties?

• End the problem

• Allocate supplies randomly

• Calculate the total transportation cost

• Find the maximum penalty again

How is the final allocation table prepared?

• By copying the initial values

• By randomly assigning values

• By using the calculated allocations

• By maximizing the penalties

What is the formula for calculating the Total Transportation Cost (TTC)?

• Difference between supply and demand

• Sum of (cost per unit * number of units)

• Product of supply and demand

• Sum of all penalties

What is the final Total Transportation Cost calculated in the video?

• 779

• 1000

• 880

• 900