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Transportation problem in AMA

(Guest)

when dummy should be added in transportation profit maximisation situation?

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9 Replies

Tony John (Chartered Accountant) (6085 Points)
Replied 08 March 2017

In maximization problem. first we convert the matrix to an opportunity cost matrix by deducting each cell value from the highest cell value.

Next, if the matrix is unbalanced ie say demand and supply are not equal, we insert dummy row/column with cell value 0 to fill the deficiency.

Now proceed to solve the problem.

I hope it is clear.

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ankita gandhi (student) (5908 Points)
Replied 08 March 2017

Dummy is required to add when problem isn't balanced. Like if supply is more than demand then, how will u do appointment. Answer this question and u will get answer of your question.

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(Guest)

there r two views in pm.first is when profit Matrix is calculated and second is when loss Matrix is created . totally confused.which one is reliable.as question is same in pm bt answer is different from the same problem and also approach for solving this question is also different.see question no 11 and question no 12 of pm

ankita gandhi (student) (5908 Points)
Replied 08 March 2017

Fine there are steps to solve transportation problem. You follow those steps which are given in PM theory part, u will come to know about it.

2 Like

surendra singhavi (student) (124 Points)
Replied 08 March 2017

only difference in both qustn initial feasible solution. but final answer will be same.

Tony John (Chartered Accountant) (6085 Points)
Replied 08 March 2017

Even if you insert dummy first or insert dummy after converting to loss matrix, the final answer will be the same.

surendra singhavi (student) (124 Points)
Replied 08 March 2017

yes. when dummy first then we don't need to create loop in this qustn

surendra singhavi (student) (124 Points)
Replied 08 March 2017

because we have 7 value including 2 dummy. nd profit will be same

sagar parakh (Group 2 Cleared) (317 Points)
Replied 08 March 2017

If dummy is required (that is misbalance b/w supply and demand) and given question is maximization problem,then Dummy shall be inserted first,then max problem shall be converted into minimisation problem and accordingly solve the solution.
PS: Same has been taught by sanjay Aggarwal sir.