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Suppose we are asked to find the basic feasible solution for maximizing transportation cost using Vogel approximation method (VAM). We then convert it into minimization type by changing the sign of values in the cost matrix. We then write the row penalty and column penalty. Suppose there is tie between 2 penalty values, which should be taken first? I have this doubt because I get 2 different solutions in each case.

If the question was minimization type and if there is a tie we would take that penalty corresponding to which there is minimum cost. If I apply the same rule in maximization type question, I get a solution which is less than the other solution (i.e. suppose solution obtained by applying the rule is 1000 and the other solution is 1200, this solution(1000) is not appropriate as the question is to obtain maximum cost).

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# Homework Help: Transportation problem

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