Analysis of Minimizing the Transportation Cost using Least Cost and Vogel's Approximation Methods

Abstract

In industries, raw material (finished products) is transported from factories to warehouses, which involves transportation cost. To reduce this cost, transportation methods are used. In Mathematics and Economics, transportation theory is the name given to the study of optimal transportation and allocation of resources. Transportation methods are strongly recommended to minimize the transportation cost. Transportation models application is very helpful to organize the process of goods distribution. This paper analyses on minimizing the transportation cost based on Least Cost and Vogel's Approximation Methods. By analyzing differences between these two methods such as number of iterations, runtime, initial solution and optimal solution, we can know which method is more effective.