What are the differences between transportation problems and

What are the differences between transportation problems and assignment problems? Why are these of high importance in the business world?

Solution

Assignment Problem:

In case of an assignment problem, the main focus remains on allocating different jobs or activities to different individuals in the organization. These assignments of activities must be conducted in such a manner that the overall processing time can be minimized and efficiency can be maximized along with obtaining greater productivity.

There are mainly two methods by which assignment problems can be solved :-

(a) Completer enumeration method.

(b) Hungarian method

In case of an assignment problem, in any row or column, only one allocation can be done as the man focus remains on assigning the jobs to different individuals.

When the number of activities to be assigned is not equal to number of individuals, such types of assignment will be termed as an unbalanced problem.

Transportation Problem:

A transportation problem is mainly related to the selection of routes in a product distribution network among the various manufacturing plants and distribution warehouse located in various regions or local outlets.

There are three main methods by which we can solve the transportation problem

(a) VAM (b) NWCR (c) LCM

Thereafter we find the optimum solution by using the MODI method and stepping- stone method.

There are no such restrictions associated with the transportation problem and thus many allocations can be done in a certain row or column. The main focus remains on finding the route which can be used to minimization of cost and maximization of profit.

When the total demand is not equal to total supply it is unbalanced problem.

Importance:- Both of these methods are quite important for the business as these methods helps in reducing cost, inefficiency and help in improving the productivity of the business. On one hand m then main focus of assignment problem remains on minimizing overall processing time and efficiency can be maximized along with obtaining greater productivity. On the other hand , the focus remains on finding the route which can be used to minimization of cost and maximization of profit in case of transportation problem.