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Transportation problem in AMA

CA Final 928 views 9 replies

Guest

when dummy should be added in transportation profit maximisation situation?

Replies (9)

Tony John

Chartered Accountant

6085 Points Posted on 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.

ankita gandhi

student

5908 Points Posted on 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.

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 Posted on 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.

surendra singhavi

student

124 Points Posted on 08 March 2017

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

Tony John

Chartered Accountant

6085 Points Posted on 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 Posted on 08 March 2017

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

surendra singhavi

student

124 Points Posted on 08 March 2017

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

sagar parakh

Group 2 Cleared

317 Points Posted on 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.