How do you convert the unbalanced t.P into balance one?
Answers
In real-life, supply and demand requirements will rarely be equal. This is because of variation in production from the supplier end, and variations in forecast from the customer end. Supply variations may be because of shortage of raw materials, labour problems, Transportation Model improper planning and scheduling. Demand variations may be because of change in customer preference, change in prices and introduction of new products by competitors.
These unbalanced problems can be easily solved by introducing dummy sources and dummy destinations. If the total supply is greater than the total demand, a dummy destination (dummy column) with demand equal to the supply surplus is added. If the total demand is greater than the total supply, a dummy source (dummy row) with supply equal to the demand surplus is added. The unit transportation cost for the dummy column and dummy row are assigned zero values, because no shipment is actually made in case of a dummy source and dummy destination.
Example : Check whether the given transportation problem shown in Table is a balanced one. If not, convert the unbalanced problem into a balanced transportation problem.