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VAM (Vogel’s Approximation Method) is a renowned technique ormodel to find initial basic feasible solutions to Allocation problems. For allocating scare resources between competing options, VAM is increasingly treated as a smart approximation technique, often applied in combination with a set of additional user-based assumptions.
A few words on VAM
VAM was initially used, and till remains most popular in, Transportation problems. You need first to build a Matrix/Table with the Cost for all Demand and Supply options. The difference between the two Lowest Costs for each Row & Column, are noted below or on the side of the Table. The formal name given to these differences is ‘Penalty’. The highest possible amount is then allocated to the Rows/Columns with maximum Penalty.
It’s an iterative procedure, that is, it gets repeated the same way, till the entire allocation process is complete.
Empirical data has suggested that VAM (or sometimes a modified VAM) brings up a result real closer to the optimal solution. A good number of research works are on to improve upon and find alternatives to VAM. However, VAM still remains one of the favorites of the OR students and users the world over.
Challenges the student faces
While users tend to have a fondness for VAM, it is rather rare to find students loving it. And there is good reason for the same too.
VAM is pretty complex to understand and grasp for a beginner. In case of specific modifications, the matter has the potential to be worse.
Calculations under VAM are layered and laborious. The iterations can be many, and use up a considerable time of students.
Moreover, the best methodfor breaking up Ties, is not always easy to determine.
All in all, VAM poses a substantial difficulty to OR, Statistics and Commerce students. And the able service provided by myhomeworkhelp.com comes a long way to redeem situation.
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